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Posted Wed, 14 Feb 2024 16:26:12 GMT by
Hi, assuming a scenario in which I earn £112000 and each month through salary sacrifice I contribute through salary sacrifice £294 to my employer-registered private pension fund. If I wanted to bring my Net Adjusted Income under the £100000 threshold, how much should I pay in my pension fund? Would the £3528 (£294*12) be already accounted to bring down the NAI, so £112.000 - £3528 = £108472 and I'd need an extra £8472? I am also confused by how much say, a £10.000 contribution would bring down the NAI. -£10.000? -£12.000? Thank you for the help and support.
Posted Tue, 20 Feb 2024 09:07:38 GMT by HMRC Admin 19 Response
Hi,

Salary sacrafice pension payments will not be applied to or affect your adjusted net income. A contribution of £10,000 would deduct a grossed up amount of £12,500 from your adjusted net income.

Thank you.

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