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Posted Tue, 23 Jan 2024 11:20:14 GMT by
Hi there, can I have some help with adjusted net income calculations? - income £100,000 - company car allowance £550 per month (£6600 per year) CO2 emissions 0, P11D £31,610 - salary sacrifice pension 5% My calculation is: £100,000 + £6,600 - £5,000 and therefore ANI £101,600 Therefore if I wanted to keep my ANI under £100,000 for childcare purposes I could sacrifice another 2% (£2000) of my salary in to my pension and therefore ANI would be £99,600 ? Am I right in thinking the cycle to work scheme is not included in ANI many thanks
Posted Wed, 31 Jan 2024 06:42:42 GMT by HMRC Admin 25
Hi Alice588,
Your adjusted net income calculation is correct.
While we can't specifically advise you on how to reduce your ANI, paying into your pension in the way you've described would reduce your ANI as you expect.
And if your Cycle to Work scheme is taken from your pay before tax, it would not count as a deduction towards your ANI.
Thank you. 
Posted Wed, 31 Jan 2024 09:22:33 GMT by
Thank you. Can I also check re: company car. I pay benefit in kind tax and therefore my tax code is 1112L. How do I calculate what I add on to my ANI for it? Is it the car benefit charge? The benefit charge is £652 per year as my car is fully electric.
Posted Mon, 05 Feb 2024 16:27:22 GMT by HMRC Admin 19

It would be the car benefit amount on your P11d, if it is £652, then this is what you would include.

Thank you. 

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