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Posted Wed, 01 Nov 2023 21:10:09 GMT by
I’m confused on what my adjusted net income is. My annual income on P60 is 52583.18 I pay 135.24 a month into my pension - this comes off pre tax. Do I multiply the monthly pension payment x 12 and deduct from annual figure? And do I have to so the extra step around tax relief - i.e multiply the pension deductions by 1.25? (Here I’m referring to step 3: Step 3 - 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.) Help much appreciated!
Posted Fri, 10 Nov 2023 09:18:05 GMT by HMRC Admin 20
Hi Jemmam,
If the pension contributions are taken from your income before your tax is calculated then you have already received the tax releif and this would not be
deducted again for the adjusted net income. Personal Allowances: adjusted net income
Thank you.

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