GUY101

Hi, continuing from lolidad's post, I wish to report the two methods I found on 5 different websites for calculating the net adjusted income from the P60: if for example I have 140k written on my P60, and the accumulated pension contributions (shown in my P11 in March) are: 20k (employee through sacrificial salary) and 10k (from my employer, including NIC), which one of these methods is right? Method 1: * Start with P60 * Add my 20k sacrificial salary to restore my total earnings * Add the total pension contribution of my employer: 10k + 20k (this latter 20k is again my sacrificial salary, because it has become a part of my employer contribution) So adjusted income: 190k Method 2: * Start with P60 * Add my 20k sacrificial salary to restore my total earnings * Add the pension contribution of my employer (discounting my sacrificial salary): 10k So adjusted income: 170k I fully understand the HMRC cannot be liable for individual circumstances, and also I did not include any additional income, so this is only an academic case to learn the rules in this very simple example. I assume no other income. Could you be so kind telling me which method is correct? Thank you for your reply.