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Adjusted Net Income
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MrNeville
Posts: 3 Newbie


Can anyone help, I’m really confused as to how I calculate my adjusted net income and concerned I’ve gone over the threshold for Child Benefit. I believe it’s gross wage minus pension contributions, but added complication is that I have a company car, which is not salary sacrifice. Do hypothetically, if I have a salary of £60,000, pension contributions of £6,000 a year, a company car which states a BIK of £330 on my payslip, but I pay £158 + £30 tax, how on earth do I work out net adjusted income, soooo confused
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See https://www.gov.uk/guidance/adjusted-net-income
i think it’s gross plus BIK minus pension (the gross amount)
£60,000 + £3,960 - £6,000 = £57,960.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
See here;
https://www.gov.uk/guidance/adjusted-net-income
But yes employment benefits such as Co Car will apply. I believe it's the value on your P11D. Or are you saying you get a car allowance of £330 a month?0 -
Can’t find my P11D at the moment. Car and Fuel BIK on payslip is states as £330 (this is just in the comments section). I pay £158 plus £30 tax contribution towards car a month which I pay after tax0
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You cannot deduct salary sacrifice pension contributions.
For two reasons, firstly you haven't actually contributed anything to the pension, your employer has. Secondly your P60 will already reflect the reduced taxable pay so deducting them would mean you have double counted them.
Same goes for net pay contributions, which you do pay, but are already reflected on the P60 taxable pay amount.0 -
MrNeville said:Can’t find my P11D at the moment. Car and Fuel BIK on payslip is states as £330 (this is just in the comments section). I pay £158 plus £30 tax contribution towards car a month which I pay after taxInformation I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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