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Posted Wed, 04 Sep 2024 16:46:55 GMT by Andr2ip
Hi, I'm working on my first self-assessment. There's a question: "Was your Adjusted Net Income over £50,000? (Your income before any personal allowance)." To calculate this, I need to: Step 1 - work out your 'net income' Add up your taxable income, include things such as: - income from employment including any company benefits etc. I'm having trouble understanding the concept of "income from employment." Based on my P-60 form, my pay was 63423,06 and tax deducted was 13750.95. After deductions for National Insurance and pension, my bank account received an income of approximately £45,000 from my employer. How do I answer the question "Was your Adjusted Net Income over £50,000?" if this was my only source of income?
Posted Thu, 12 Sep 2024 14:32:47 GMT by HMRC Admin 13 Response
Hi 
Please see the guidance: Personal Allowances: adjusted net income 
You start with your total taxable income and deduct any tax relief. 
This may include your pension but not Income Tax and National Insurance.
Thank you

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