if there is occupational pension scheme and personal pension scheme given in the question.....and if i have to calculate adjusted net income for calculating the reduced amount of personal allowance....when the income exceeds 100000pounds.....e.g.what amount will i have to deduct from net income ? occupational pension scheme or personal pension scheme ????
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Personal allowance
Personal pension contributions.
what about the occupational pension amount ?
total icome less occupational=net icome then less the personal pension scheme.......
is this the right approach if both of the amount is given in a question ?
Nope PPC works a bit differently. It increases the Basic and Higher tax rate band. And helps calculating adjusted net income. Occupational pension scheme is just deducted from the employment income. You should try notes. Everything will be clear to you!
thanks bro :)
Yes you only deduct the gross PPC in deriving the adjusted net income as any occupational pension contributions have already been deducted from employment income
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