Child benefit and pensions

Shankers

Hi all
I've become an accidental landlord. Rental and salaried income now £58k approx.
Already paying about £5000 p/a into a workplace pension (net pay arrangement).
Allowable expenses for the property are around £1.5k p.a for this tax year so far. 
This still leaves me around £3k to reduce for ANI. 
Not sure I'll keep the property more than another couple of years so I'm not keen on upping the % of my workplace contributions, so I'm looking for something more flexible. My question is whether a SIPP counts towards lowering my Adjusted Net Income.
In my mind (and from my understanding): my situation is this:
Salary (£52k) + rental income (£6k)  = £58k
£58k - workplace pension (£5000) and - allowable expenses (£1.5k) = £51.5k
If I make a £900 SIPP contribution before this tax year ends, would this be grossed-up to £1.5k, therefore taking my Adjusted Net Income to £50k and therefore preventing me losing out on any child benefit?

Dazed_and_C0nfused

Yes, personal contributions to a SIPP do reduce your ANI.

Whatever you contribute (net) to a relief at source pension like a SIPP gets 25% added by the pension company.  This is the basic rate tax relief.  For example if you contribute £900 they will add £225 making a gross contribution of £1,125 (£1,125 x 20% = £225).

The gross contribution also increases your basic rate band so in this example instead of being £37,500 your basic rate band would be £38,725.  Any tax saving from this reduces your personal tax liability, it never gets added to your pension fund.

You may find it simpler to stick to the key things for tax purposes.  For example salary is irrelevant, it is taxable pay (the amount on your P60) which matters i.e. £47,000 in your example.  And ANI (and income tax liability) is based on your taxable profit from the rental property.

[Deleted User]

£1200 would need to be paid to be ‘grossed up’ to £1500. (1500 less 20% = 1200). You then claim the additional 20% relief, on the 1500, from HMRC.