Tax returns - adjusted net income and HICBC

5p0rt5_fan

Trying to get my self-assessment tax return right. Any help appreciated with adjusted net income, please, as it's the bit I'm not sure on (despite reading HMRC guidance) and I want to get it right, especially as I suspect this year it will put me somewhere in the HICBC sliding scale range. I know my income from employment salary (changed between permanent full-time employments mid-year), savings interest paid without tax deducted from various building society accounts. I know how much I donated to charities with gift aid arrangements (think I have to gross that up by adding 25%?) and that I reclaimed tax on some (think it's 30%) of my professional union subscription. I received full child benefit for 2 children. Can anyone help with the calculation, please? Thank you.

Dazed_and_C0nfused

Step 1 add up all your taxable income.  That includes any that is taxed at 0%.

Step 2 deduct the gross Gift Aid contribution

Step 3 check which method was used to get money into your pension.  You can deduct relief at source contributions (where the pension company adds 25%).  You cannot deduct net pay or salary sacrifice contributions.

What was included in your tax code for the professional union subscription (the tax code allowance)?

5p0rt5_fan

Dazed_and_C0nfused said:

Step 1 add up all your taxable income.  That includes any that is taxed at 0%.

Step 2 deduct the gross Gift Aid contribution

Step 3 check which method was used to get money into your pension.  You can deduct relief at source contributions (where the pension company adds 25%).  You cannot deduct net pay or salary sacrifice contributions.

What was included in your tax code for the professional union subscription (the tax code allowance)?

Thank you for replying. So total income from emplyment and savings interest. Work out gift aid + 25% and deduct this. The pension is an at source one, contributions are before tax. So my understanding is I can't deduct this. Will check on my tax code for union subscriptions. Thank you.

Dazed_and_C0nfused

5p0rt5_fan said:

Dazed_and_C0nfused said:

Step 1 add up all your taxable income.  That includes any that is taxed at 0%.

Step 2 deduct the gross Gift Aid contribution

Step 3 check which method was used to get money into your pension.  You can deduct relief at source contributions (where the pension company adds 25%).  You cannot deduct net pay or salary sacrifice contributions.

What was included in your tax code for the professional union subscription (the tax code allowance)?

Thank you for replying. So total income from emplyment and savings interest. Work out gift aid + 25% and deduct this. The pension is an at source one, contributions are before tax. So my understanding is I can't deduct this. Will check on my tax code for union subscriptions. Thank you.

Pension terminology is confusing but (relief) at source is paid after tax not before.

I suspect you mean net pay, which cannot be deducted.

But you don't really need to do any of this, as you are completing your return anyway that will generate the correct HICBC amount.  Providing you put the correct info on your return in the first place of course.