Harrim
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RE: Adjusted Net Income - Private Pension
Hi admin, Thanks for getting back to me. The main issue I have here is that page you have linked me to doesn’t answer my second question. Could you please clarify? Thanks again. -
Adjusted Net Income - Private Pension
Hi there, I am struggling to make sense of what my net adjusted income will be. I have two jobs: 1. £85,000 where I salary sacrifice 4% of my salary to a pension. My payslips state my 'Taxable pay' will be around £82,000. 2. £20,000 where I pay 1.7% towards a pension. Total earnings are £105,000 per annum. I also pay into a private pension that uplifts every £1 I pay in to £1.25. So if I pay in £1000, my balance shows as £1,250. Due to the benefits associated with childcare, I want to keep my adjusted net income below £100,000. My questions are: 1. Does my salary sacrifice of 4% reduce my adjusted net income by £3,400 (4% of £85,000) 2. Does my payment into my private pension reduced my adjusted net income by £1 for every £1 I pay in, or £1.25, or £1.40 as I pay 40% income tax, or some other figure? All help is very greatly appreciated.