lolidad

Thank you for replying. To clarify, this is a hypothetical example aiming to understand how the salary sacrifice is handled in Threshold and Adjusted Income calculation - this is why I assumed there is no other source of income. As the HMRC help pages do not have a worked example for above case, I thought it will be useful to clarify. I will do my actual calculation with consideration to my full circumstances. Appreciate your help with this, please do feel free to add any caveats in your reply.

Hi HMRC Admin, For illustration, is it not possible to add relevant calculations for just one simple case please - Employed individual with employer contribution to workplace pension and employee contribution to workplace pension via salary sacrifice? Even just this simple case will cover majority of employed individuals in the country and also hopefully save you time. Allowance limits change with time but calculations for Threshold Income and Adjusted Income does not, so your time will be worth invested on this. Cheers.

Hello, Assuming salary as only source of income, is the below calculation for tapered allowance for 2023-24 correct please. Inputs: * Salary from P60 (total income on which tax is due): 225,000 * Employer pension contribution: 27,000 * Employee salary sacrifice to pension: 14,000 Calc: Threshold income = 225k Adjusted income = 225k + 14k + 27k = 266k Pension allowance = 60k - 6k/2 = 57k Cheers