Jelly
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Help on calculating Adjusted Net Income
Hi, I'm trying to work out how much voluntary pension contribution I should pay into the Scheme, to bring down my Adjusted Net Income to below 100,000. If I trust my payslip, my payslip says for tax year 22/23, Taxable pay is 131,000 I do not have any other income source, and every benefits etc. was reflected in my payslips. I make regular pension contributions to a company scheme and the amount is taken before tax, Monthly pension contribution: 450 Monthly company pension contribution: 900 (straight from the company into the pension pot) My understanding of calculating my adjustable net income, should be, 131000 - (450 x 12) = 125,600 so I should make a voluntary pension contribution of 25,601 to bring down my annual Adjusted Net Income to below 100K. (My pension scheme confirmed that when making a payment outside of payroll, no tax relief is given and you need to claim any relief due from H.M. Revenue and Customs.) (No need to take into account my pension allowances, as I have carried forward at least 50,000 from the past 2 years) So my questions are: 1. Is the above calculation correct? 2. Should I also deduct the company pension contribution amount from my Adjusted Net Income? Or is that irrelevant. 3. Because my pension scheme said no tax relief is given, so if I make a voluntary contribution of 25,601, will that be the "grossed up" amount? Thanks in advance for any helps.