SIPP contributions & adjusted net income

Hello, Do voluntary personal contributions from post-tax income to a private pension reduce adjusted net income? My understanding of the HMRC Admin response to this person’s question is that yes, they do: https://community.hmrc.gov.uk/customerforums/pt/0aa31d5b-40cf-ee11-a81c-000d3a86b03a But when I spoke to an HMRC advisor by telephone yesterday, they told me that they do not. As a worked example, if my taxable income in the current tax year is £110 000, and I pay £5 000 into a workplace pension through salary sacrifice and £15 000 into a SIPP, is my adjusted net income for the current tax year 110k – 5k – 15k = £90 000? Many thanks.

Hi,

If the contributions are from your net pay, then yes, this will reduce the adjusted income figure.

Thank you.