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Posted Mon, 22 Jan 2024 12:42:25 GMT by
Hi, on my SA, how has HMRC calculated the reduced personal allowance amount please? Pay from all employments £117,720.00 plus benefits and expenses received £2,020.00 minus allowable expenses £414.00 Total from all employments £119,326.00 Dividends from foreign companies £121.00 Interest from UK banks, building societies and securities etc £205.00 Total income received £119,652.00 minus Reduced Personal Allowance £9,182.00 A SIPP payment of £10,100 was made from net pay (12625 total incl relief) and also a gift aid payment of 200 from net. Thanks
Posted Fri, 26 Jan 2024 09:33:40 GMT by HMRC Admin 25
Hi halogenglow,
£119,652-SIPP £12625-Gift Aid £250 = £106,777.
This gives £6777 over £100K divided by 2 = £3388 this is dedcuted from personal allowance £12570 giving £9182.00.
The gift aid payments is grossed up by the 20% tax relief claimed by the charity. 
Thank you. 

Posted Fri, 26 Jan 2024 09:49:16 GMT by
Thank you, that helps a lot!

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