Adjusted net income for 30 hours childcare

Hello, I'm trying to calculate my adjusted net income in order to understand if I fit in the 30 hours or 15 hours free childcare. My net income is 113.746. My employer takes 10% before taxes for a private pension. According to your guidelines, to calculate my adjusted net I should take off pension contribution in this way: for every £1 of pension contribution you made, take £1.25 from your ‘net income’. If my calculation is correct my adjusted net is 99.528. This is given by my net income 113.746 minus 10% net pension contribution 11.374 x 1.25 14.218 = 99.528 Is this correct? Or should I only take off 10% as 11.374? Thank you so much!

Hi,

If your employer deducts the pension contributions from your gross pay before tax is calculated then you would not deduct again for the adjusted net income.

Personal Allowances: adjusted net income

Thank you.

Hello, IF i have a gross income of £146,000. Am I right in thinking in thinking, to bring my adjusted net income to £99,500, I need to pay £37,200 into my SIPP. (As it gets grossed up by £9,300) to bring it to a £46,500 total. I have been told this is correct but just want confirmation before I go ahead and make the payment. Thank you so much,

Hi  ,
 

That's correct. See :   Personal Allowances: adjusted net income   .

Thank you .