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Posted Thu, 23 Nov 2023 13:44:00 GMT by
Hi I'm trying to calculate my ANI for purposes of Child Beneift but am finding the guidance confusing & conflicting. I now earn approx £55k and need to understand how & if my pension contributions will reduce my ANI figure. I currently pay 6% of my salary payment into a company pension plan via 'salary sacrifice'. My understanding is that these payments are taken from my salary 'before' tax & NI deductions. Your Child Benefit tax calculator page states: Pension contributions deducted from your pay (do not include contributions deducted before tax) But your guidance page states: 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’. Which one would apply to me? Do I take off my contributions, and if so, do I then use the 1.25 multiplier? Thanks These sound like conflicting advice to me.
Posted Sat, 25 Nov 2023 14:57:56 GMT by
Hi Tony, I have the same question - the advice seems conflicting to me too! I'd also like to know if other benefits made via salary sacrifice (e.g. childcare vouchers) need to be taken into account for this calculation too? Thanks
Posted Tue, 28 Nov 2023 09:40:20 GMT by HMRC Admin 32
Hi Tony,

If your pension contributions are deducted from your wage as salary sacrifice which takes your income down to £55k then you would not deduct again for adjusted net income. 

Thank you.

Posted Thu, 30 Nov 2023 09:11:35 GMT by HMRC Admin 25
Hi LO'D,
You can check here:
Personal Allowances: adjusted net income
Thank you


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