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  • FIRST POST
    • Bluesden
    • By Bluesden 16th Apr 18, 2:54 PM
    • 3Posts
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    Bluesden
    Adjusted net income question
    • #1
    • 16th Apr 18, 2:54 PM
    Adjusted net income question 16th Apr 18 at 2:54 PM
    Hello.
    Hoping someone can provide a little clarity please, I understand the concept of Adjusted net income and how this can be reduced. However, one thing is not clear to me regarding pension payments:

    The HMRC website mentions pension payments to a company scheme should be deducted as part of the ANI calculation on a gross basis, but they don't clarify if additional payments (not paid through my payroll) should be deducted as a net or gross amount as part of the calculation.
Page 1
    • purdyoaten2
    • By purdyoaten2 16th Apr 18, 4:33 PM
    • 848 Posts
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    purdyoaten2
    • #2
    • 16th Apr 18, 4:33 PM
    • #2
    • 16th Apr 18, 4:33 PM
    Gross amount.

    [I]Step 3 - take off pension contributions
    If you made a contribution to a pension scheme where your pension provider has already given you tax relief at basic rate, take off the grossed-up amount - what you paid plus the basic rate of tax.

    So, for every 1 of pension contribution you made, take 1.25 from your net income
    purdyoaten lost his password
    • Bluesden
    • By Bluesden 16th Apr 18, 5:02 PM
    • 3 Posts
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    Bluesden
    • #3
    • 16th Apr 18, 5:02 PM
    • #3
    • 16th Apr 18, 5:02 PM
    Thanks for the answer, but that's just the issue I'm having... By paying an amount directly to my pension provider outside of any work based salary payment (and therefore relief at source) do I still use the gross amount?
    Cheers.
    • purdyoaten2
    • By purdyoaten2 16th Apr 18, 5:43 PM
    • 848 Posts
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    purdyoaten2
    • #4
    • 16th Apr 18, 5:43 PM
    • #4
    • 16th Apr 18, 5:43 PM
    The answer is still Yes!
    purdyoaten lost his password
    • Bluesden
    • By Bluesden 16th Apr 18, 5:44 PM
    • 3 Posts
    • 0 Thanks
    Bluesden
    • #5
    • 16th Apr 18, 5:44 PM
    • #5
    • 16th Apr 18, 5:44 PM
    Perfect. Thank you!
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