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?
These sound like conflicting advice to me.