Adjusted net income help please.

AC20

As an illustrative example,

1. My total gross salary is 110000
2. Salary after salary sacrifice pension contribution, additional bonus and company benefits is 105,000

How much private pension contribution should i make to bring my adjusted net income to 99000.

Thanks

HappyHarry

£6000 gross (£4800 net).

Have you made sure to include in your ANI any taxable benefits in kind, dividends and interest payments?

AC20

HappyHarry said:

£6000 gross (£4800 net).

Have you made sure to include in your ANI any taxable benefits in kind, dividends and interest payments?

Yes the 105k figure is after paying pension through salary sacrifice, benefits, interest payments and a one off annual bonus.

a.Sorry when you say 6k gross 4800 net. do i need to pay 6k into the private pension account?
b. does my reclaiming higher tax charge via self assessment impact ANI?

[Deleted User]

AC20 said:

HappyHarry said:

£6000 gross (£4800 net).

Have you made sure to include in your ANI any taxable benefits in kind, dividends and interest payments?

Yes the 105k figure is after paying pension through salary sacrifice, benefits, interest payments and a one off annual bonus.

a.Sorry when you say 6k gross 4800 net. do i need to pay 6k into the private pension account?
b. does my reclaiming higher tax charge via self assessment impact ANI?

You pay £4800 - grossed up to £6000 by pension provider and ANI reduced by £6000. 

You claim additional relief (by informing HMRC) of £1200 (20% of £6000). ANI remains £99000.

AC20

[Deleted User] said:

AC20 said:

HappyHarry said:

£6000 gross (£4800 net).

Have you made sure to include in your ANI any taxable benefits in kind, dividends and interest payments?

Yes the 105k figure is after paying pension through salary sacrifice, benefits, interest payments and a one off annual bonus.

a.Sorry when you say 6k gross 4800 net. do i need to pay 6k into the private pension account?
b. does my reclaiming higher tax charge via self assessment impact ANI?

You pay £4800 - grossed up to £6000 by pension provider and ANI reduced by £6000. 

You claim additional relief (by informing HMRC) of £1200 (20% of £6000). ANI remains £99000.

many thanks. you have been super helpful.