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Adjusted net income help please.

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AC20
AC20 Posts: 50 Forumite
Fourth Anniversary 10 Posts
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

Comments

  • HappyHarry
    HappyHarry Posts: 1,813 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    £6000 gross (£4800 net).

    Have you made sure to include in your ANI any taxable benefits in kind, dividends and interest payments?
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • AC20
    AC20 Posts: 50 Forumite
    Fourth Anniversary 10 Posts
    edited 31 March at 2:05PM
    £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?

  • Nomunnofun1
    Nomunnofun1 Posts: 689 Forumite
    500 Posts Name Dropper
    edited 31 March at 2:23PM
    AC20 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
    AC20 Posts: 50 Forumite
    Fourth Anniversary 10 Posts
    AC20 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.
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