This topic contains 3 replies, has 2 voices, and was last updated by 
Tax Tutor 1 month ago.
- Posts
- November 6, 2019 at 8:58 am
In various different books and examples I seem to see occasions when Gift aid or pension contributions are deducted from total income to give adjust income and some when these contributions are not deducted, am I missing somethign are there occassions when gift aid and pension contributions are not deducted to give an adjusted income figure?
November 6, 2019 at 11:01 amYour question is entitled adjusted NET income but in your question you use the term “adjusted income”. Tell me precisely what different terms you actually wish to define
November 6, 2019 at 1:45 pmIt is the Adjusted NET income please,
If I am correct, this is the total After deductions (qualifying interest) but before Personal allowance?
Also it will take into effect though any gift aid or Personal pension contributions?
But this is the part i am struggling with, on a few different examples / questions I seem to see Adjusted net income sometimes include the gift aid / pensions but sometimes these contributions do not affect the total?November 7, 2019 at 12:59 pmAS per OT Notes the purpose of the ANI calculation is to determine whether any deduction must be applied to the PA and is computed as:
“ANI is net income less gross personal pension contributions and less gross gift aid payments”
You will never see these deductions on the face of the income tax computation – hence take the Net Income from the computation and then adjust by making these deductions. Then compare ANI with the £100,000 income limit to determine whether any deduction is required from the PA.
The only issue you must note – as you have in fact stated above – is that this is only an issue for personal pension contributions NOT occupational!
You must be logged in to reply to this topic.