hmrccommunity-JC

I have been extremely confused by this exact issue on threshold income calculation. So what is the conclusion - do employee contributions made through salary sacrifice reduce your threshold income or not? The HMRC examples seem to suggest that salary sacrifice contribution do NOT reduce your threshold income whereas other forms of contribution (eg. the Jon example above) do reduce your threshold income. Similarly, if I contribute to a SIPP, it would reduce my threshold income. But if I contribute via salary sacrifice, it gets added back and doesn't reduce my threshold income. In both cases, my personal contribution is the same and it has the effect of reducing my taxable income (and take home pay), so I don't understand why they are treated in completely opposite ways? Please could you clarify? Regards 

In Removed Admin .