Adjusted Net Income & Salary Sacrifice Pension Contributions.

Working out Adjusted Net Income for 2022/23 self assessment completion for determination of High Income Child Benefit Charge. Ref: Step 1 - work out your ‘net income’ In the guidance it says ‘Add up your taxable income, include things such as:… I understand all of this section apart from the following point: ‘. Payments made gross to pension schemes, those have been made without tax relief.’ Scenario: Gross salary = £56,000 Pension contributions £3,000 were taken from the gross salary, before it was taxed. These are reflected as ‘employER contributions’ in my pension statement, zero contributions are recorded from me and zero tax relief applied in the pension statement. Therefore Taxable Income = £53,000 The use of the words ‘made gross’ and ‘without tax relief’ confuse me the the following point; ‘. Payments made gross to pension schemes, those have been made without tax relief.’ Do I…. a) add the £3,000 back to my £53,000 taxable income to make a ‘net income’ of £56,000 Or b) ignore the pension contributions as they are employER contributions taken before tax, and so my ‘net income’ is simply my taxable income of £53,000? I think b) but the use of the words ‘made gross’ and ‘without tax relief‘ are giving me doubts. Thanks.

Hi Helen C,
As the pension contributions are taken from your salary before the tax is calculated you would have received the relief for the contributions so the figure would be the £53,000. 
Thank you,