Self Assessment / Adjusted Net Income Help

Dazed_and_C0nfused

There are three main methods of contributing to a pension and they all work slightly differently.

Net pay is where you pay into the pension and they are taken before tax is calculated i.e. salary £105k less £5k net pay pension = taxable pay (P60 figure) £100k

Relief at source is where basic rate tax relief is added to your contribution but they no direct impact on your taxable pay i.e. salary £105k with £5k relief at source contribution = taxable pay (P60 figure) £105k.  But £5k is added to your pension fund and the pension company adds £1,250 in basic rate relief making a gross contribution of £6,250

Salary sacrifice are where you don't contribute, you agree to a lower salary in return for additional employer contributions 

Based on what you have posted your contributions are net pay.

But you should check this assumption is correct.