accounting for salary sacrifice in arriving at Threshold and Adjusted Incomes

I see that, in moving from Net Income to Threshold Income, I should add salary sacrificed amounts. Is that just the gross that's been sacrificed, and not any saved employer's NI that might've been included in the payment made to the pension by the employer? And, when it comes to adding employer contributions to get from Threshold Income to Adjusted Income, do the employer NI amounts relating to the salary sacrifice get added there in effect? Probably not explaining this well. Here's some example numbers: Total gross income before salary sacrifice: £200,000 Of which £10,000 is sacrificed (and that's paid over with the employer's NI saved) Further £20,000 of employer pension contributions (separate to the salary sacrifice amount) Does that mean..: Net Income £190,000 Threshold Income £200,000 (the £10,000 sacrificed added back) Adjusted Income £221,380 (being the Threshold Income, plus the employer's NI on the salary sacrificed amount - £1,380 - and the £20,000 of employer pension contributions. I think that's right, just not 100% many thanks (and sorry if this has been covered previously..) Steve

Hi,
You can read how to calculate your threshold, then adjusted income here Work out your reduced (tapered) annual allowance.
Thank you.

Hi HMRC Admin, For illustration, is it not possible to add relevant calculations for just one simple case please - Employed individual with employer contribution to workplace pension and employee contribution to workplace pension via salary sacrifice? Even just this simple case will cover majority of employed individuals in the country and also hopefully save you time. Allowance limits change with time but calculations for Threshold Income and Adjusted Income does not, so your time will be worth invested on this. Cheers.