Child Benifit - Based on Salary or Take home?

kaMelo

It doesn't matter where something is on a payslip, there is no standard format. What matters is whether pension deductions are via 'net pay' (before tax and NI are deducted) or' relief at source' (tax and NI is deducted on pension contributions but then added back in to your pension pot)

If net pay the pension contributions are already deducted from your adjusted net income so you can't deduct them again, if relief at source you can deduct them.

Interest is added to your income on the day you receive it.

Grumpy_chap

I see the confusion in the OP's reading of this.

ANI (Adjusted net income) is actually a gross income figure (including tax) not nett income after tax.

In the Clara example referenced above, her total taxable income is £60k.
The adjustments (pension and gift aid) reduce the taxable income to £54k.
That taxable income is still subject to income tax (and NI) so the take home pay is somewhat less than £50k but the ANI remains above £50k and there has been a reduction in the allowable child benefit.

HICBIC is applied to your total income (before tax) but after reducing permitted deductions.

kaMelo

I agree it would make more sense to call it 'adjusted gross income'

Dazed_and_C0nfused

Grumpy_chap said:

I see the confusion in the OP's reading of this.

ANI (Adjusted net income) is actually a gross income figure (including tax) not nett income after tax.

In the Clara example referenced above, her total taxable income is £60k.
The adjustments (pension and gift aid) reduce the taxable income to £54k.
That taxable income is still subject to income tax (and NI) so the take home pay is somewhat less than £50k but the ANI remains above £50k and there has been a reduction in the allowable child benefit.

HICBIC is applied to your total income (before tax) but after reducing permitted deductions.

Gift Aid never reduces your taxable income and only certain pension contributions reduce it.

They will both reduce adjusted net income although people can get confused with pension contributions as there are 3 principal methods of contributing and they all work slightly differently.