High Income, Salary Sacrifice and Adjusted Net Income

DoctorStrange

My total compensation for 22/23 and 23/24 is expected to be around £416k (roughly £210k in 22/23 and £206k in 23/24)  

I'll have around £105k in total Annual Allowance Carry Forward from 19/20, 20/21 and 21/22 and so I'm thinking I should pay around £110k via salary sacrifice in 22/23 and £75k in 23/24 into my SIPP.

However I don't understand the Adjusted Net Income / Threshold Income process.

Do I need to add the salary sacrifice figures to the total comp values (i.e. £320k [£210k+£110k] in 22/23; £281k [£206k+£75k] in 23/24)?

Or

Do I start from my salary only and then add the pension back in (i.e. £210k [£100k + £110k] in 22/23; £206k [£131k + £75k] in 23/24)? 


I'm trying to work out if I'm above or below the £240k limit before my Annual Allowance is reduced. I think it's the second option as those are the total comp figures, but I've read about "adding pensions back into the total"  and the examples I saw were more for personal pension contributions rather than employer / SS contributions so I'm just looking to be certain I'm right in assuming my Annual Allowances will not be reduced.

Also, is there anything else I need to consider? I know about the loss of the TFA in 23/24 but it seems to work out better to have the salaries split at 100/131 rather than 115 each year.

Many thanks!

ceh209

I don't have much to add, other than, at that level of income, get yourself a Financial and/or Tax Advisor - do NOT rely on what anyone on the internet tells you!