Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 15 Nov 2022 13:43:40 GMT by shojam13
Hi, I wanted to query two conflicting pieces of information on your website that have confused me. I am trying to calculate my 'Net Adjusted Income' for the purposes of calculating a Child Benefit High Income Tax Charge. My pension contributions are made via an employer scheme under a net pay arrangement (deducted before tax). If I go to Gov.uk's Child Benefit tax calculator, I am told to simply include my "salary before tax (with pension contributions under net pay arrangements deducted)" - so I assume this is the figure on my P60, which takes into account my (actual, not 'grossed-up') pension contributions. However if I go onto the Gov.uk Guidance "Personal Allowances: adjusted net income", then under Step 3 it advises me "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. So, for every £1 of pension contribution you made, take £1.25 from your ‘net income’." Which figure am I therefore meant to include? Is my adjusted net income the figure on my P60, or am I meant to deduct a higher amount based on 'grossed-up' pension contributions? Clarification here would be appreciated.
Posted Thu, 17 Nov 2022 12:16:01 GMT by HMRC Admin 32
Hi,

Adjusted net income is the total taxable income, before any personal allowances and less certain tax reliefs.  

Guidance on how to calculate this can be found here:

Personal Allowances: adjusted net income

It is not necessary to calculate your adjusted net income when completing your Self Assessment tax return. Self Assessment will do this for you, as it is based on the entries on the tax return.

On SA102 or the employment section of the online form, you enter the pay figure stated on your P60/P45, not forgetting tax deducted. The P60/P45 pay figure is your earnings after payments to your pension scheme have been removed. You should also include benefits provided by your employer on a P11d.  

To claim higher rate tax relief on your pension payments, you enter the amount of payments made on page 4 of SA100, box TR4.1. You also enter gifts made to charity.

In the other sections of the tax return, you report any other sources of taxable income.

Some entries on your tax return will impact the tax code for the next year.

Thank you.
Posted Wed, 04 Jan 2023 12:55:10 GMT by carternufc
Hi, The answer given to this query still doesnt answer the actual question of where do I put the net adjusted income value on the self assessment form? i cant find anywhere to input my pension contributions therefore do i just adjust the value myself and put it in the Pay from box(total from p45 or p60). if not then where do I enter my pension contributions value as I cant find anywhere to put this in the online form
Posted Fri, 06 Jan 2023 16:19:56 GMT by HMRC Admin 32
Hi,

You do not enter the adjusted income figure on the return. It is calculated based on the information you enter on the return. When completing the tailor your return section, you need to answer yes to the question which asks if you made pension contributions.

Thank you.
Posted Wed, 01 Feb 2023 19:41:00 GMT by Amy Cassell
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator.

You must be signed in to post in this forum.