Adjusted Net Income for Child Benefit threshold (Pensions and trading allowance)

Just struggling to 100% understand if I am below or above last years high income child benefit threshold - Threshold for 2023/24 was £50k Full time employment figure on P60 - £41,350 Self Employed Income - £9,575 Self Employed 'profit' - £8,575 as have taken the £1k trading allowance So my first questions is - 1) is my adjusted net income here £50,925.08 (all income) or £49,925.08 (all income minus trading allowance) - i.e. is trading allowance part of the adjusted net income calculation? The latter would obviously take me below the £50k threshold My second questions is - 2) Forgetting the above for a moment as it may be irrelevant based on this question. I am a bit confused about the wording of "take off pension contributions - 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." Put simply, I am on a relief at source arrangement with my workplace pension (pension provider claims back the 20% in addition to my payments). So how does the above work, is this an allowable education? i.e. are all workplace pensions deducted from adjusted net income in someway? Thanks,

Hi ,
 

You would include the profit from your self employment for the adjusted net income : Personal Allowances: adjusted net income   . If the pension contributions are taken from your gross pay before your tax is calculated then you will already received the relief and in your taxable pay from your employer. If from your net pay then the contributions can be taken into account when you calculate your adjusted net income .  Thank you .

So I am completely clear. Are you saying when calculating 'adjusted net income' the following CAN be deducted - 1) trading allowance of £1k - i.e. I only have to count as income business profits - not the £1k allowance I've taken? 2) workplace pensions where pension contributions were taken from net and pension provider has provided relief at 25%. i.e. I can take off the grossed up amount. i.e. contributions from our net pay PLUS 25%? Thanks,

Hi,

1. For your self employment income it will be your net profits which will be gross self employment income minus the trading allowance or actual expenses.

2. If the pension contributions are from your net pay then you can claim the contributions plus the basic rate relief claimed by the pension provider. Details at:

Personal Allowances: adjusted net income

Thank you.