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Posted Mon, 26 Feb 2024 21:17:59 GMT by WinterChateau
Hello, my gross salary is £90k. I have received a bonus of £13k. I make salary sacrifice pension contributions of £7200 per annum. What should I use as my "net income" figure: £103k OR £103k-£7200=£95800? I have read the HMRC guidance on how to calculate adjusted net income, however it is not clear whether using a salary sacrifice scheme means my 'taxable income' as quoted on this page - would be £103k or £95800, please can you confirm.
Posted Thu, 29 Feb 2024 08:18:53 GMT by HMRC Admin 19

If you make a salary sacrifice, then the pension contributions would already be taken from your salary before the tax was dedcuted and so would not taken off again.

Thank you.

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