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Posted Sun, 18 Feb 2024 14:15:29 GMT by
Can you please answer why, when calculating adjusted net income, pension contributions are only grossed up by 20% (i.e. 1,25), and not the higher / additional tax rates of 40% / 45% where applicable? If I made these contributions via salary sacrifice, my ANI would reduce by the full gross amount. And I can claim higher / additional rate tax relief as part of self assessment. So the ANI calculation seems flawed, as I'd have to contribute more than I'd received on a net basis to bring my ANI below £100,000.
Posted Tue, 20 Feb 2024 16:24:03 GMT by HMRC Admin 10
The pension company that your contributions are made to claim 20% relief and if your are a higher rate or additional rate tax payer then you can claim the additional 20% or 25% relief. 
Posted Tue, 20 Feb 2024 16:34:02 GMT by
Hi, That wasn't my question. I'm aware of how to claim the additional relief. However when calculating my ADJUSTED NET INCOME for 2023/2024, any net pension contributions I've made would only be grossed up by 20%, not 40%/45%. Why is that? Thanks, 
Posted Fri, 23 Feb 2024 08:40:03 GMT by HMRC Admin 25
Hi richh,
Sorry for adjusted net income if you pay into a registered pension scheme from your net pay the pension provider claims 20% relief.
If you are a higher/additional rate tax payer your income would be reduced by the grossed up pension with 20/25% relief.
This is the case as you are only entitled to releif on the the remaining 20/25%. 
Thank you. 

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