← Calculators/Tax year 2026/27·Last reviewed
Adjusted net income calculator
Build an adjusted net income estimate from taxable income, pension and Gift Aid relief, plus the qualifying deductions or statutory add-backs in the tax computation.
Free, no sign-up. Runs the same engine and versioned tax-year config as the signed-in suite — the pension and bond calculation workbench UK paraplanners use to produce compliance-annex PDFs. Your calculator figures stay in this browser unless you choose to share or rerun them in the signed-in workbench. How we verify the numbers.
— In short
Adjusted net income starts with net income, then applies the deductions and add-backs in ITA 2007 s.58, including grossed-up Gift Aid and qualifying pension contributions. This calculator is an estimate from the entries supplied; the final figure should reconcile to the tax computation.
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Adjusted Net Income
Tax year 2026/27 · Last reviewed 20 Jul 2026
Taxable profit from a trade, profession or partnership.
Rental profit after allowable expenses.
Net contribution ÷ 0.8. Net-pay and salary-sacrifice pensions already reduce your income — leave at £0.
Grossed up automatically.
Less common tax-computation adjustments
For example eligible trading/property losses or gross pension payments made without relief, exactly as deducted in the tax computation.
Add back relief deducted at Step 1 for qualifying trade-union or police-organisation payments, if applicable.
Estimated adjusted net income
- Total taxable income
- £110,000.00
- Less grossed-up Gift Aid
- − £0.00
- Less grossed-up pension (RAS)
- − £0.00
- Estimated adjusted net income
- £110,000.00
This is an estimate from the entries above. Confirm trading or property losses, pension deductions, add-backs and any other Step 1–3 adjustments against the tax computation before relying on the figure. The Step 4 add-back applies only to the specific trade-union or police-organisation relief described by HMRC.
- Over £100,000 — personal allowance tapering and the childcare income-test cliff.
- Over £80,000 — full High Income Child Benefit Charge.
ITA 2007 s.58
For planning and illustration purposes only. Verify all inputs against source documents. This tool does not constitute financial or tax advice.
Print this quick illustration now. Signed-in users can add a client or file reference before saving it as a PDF — the branded compliance annex, with the full working and HMRC references on every page, comes from the signed-in workflow.
Keep the working
Save this as a branded compliance annex PDF.
A free account saves this calculation to a client record and renders the annex — 3 a month, no card.
This public tool builds an adjusted-net-income estimate; there is no signed-in ANI workbench yet, so reconcile the figure to the tax computation before use.
— How it's calculated
What goes in
Start with net income: all taxable income before personal allowances. Add salary, bonus, taxable benefits in kind, self-employment profit, net property income, dividends, savings interest and any other taxable income. Income taxed through PAYE counts gross.
What comes off
Deduct grossed-up Gift Aid (the amount you gave divided by 0.8) and grossed-up relief-at-source pension contributions (your net contribution divided by 0.8). Net-pay and salary-sacrifice pensions already reduce your taxable income at source, so they are not deducted again here. Enter any other qualifying deduction or required statutory add-back from the tax computation separately. HMRC’s four-step adjusted net income guide describes the Step 1 reliefs and the narrow Step 4 add-back.
— How to work out your adjusted net income
Step 1
Add up your taxable income
Total your salary, bonus, taxable benefits in kind, self-employment, property, dividends and savings — all gross.
Step 2
Gross up your Gift Aid
Divide any Gift Aid donation by 0.8 to gross it up, then deduct it.
Step 3
Gross up your relief-at-source pension
Divide your net relief-at-source contribution by 0.8 and deduct it. Net-pay and salary-sacrifice pensions are already off your taxable pay.
Step 4
Add the remaining tax-computation adjustments
Enter any other qualifying deduction or statutory add-back identified in the tax computation.
Step 5
Reconcile the estimate
What remains is the adjusted net income estimate behind the £100k taper, the child benefit charge and the childcare cliff. Reconcile it before relying on it.
— Worked example
- Net income before ANI deductions
- £110,000.00
- Grossed-up Gift Aid deduction
- − £1,000.00
- Gross pension deduction
- − £8,000.00
- Adjusted net income estimate
- £101,000.00
The £800 Gift Aid payment is grossed to £1,000. The example is computed by the same ANI engine as the tool; reconcile unusual Step 1 or Step 4 adjustments separately.
— Frequently asked questions
What is adjusted net income?
It starts with net income and then applies the deductions and add-backs in ITA 2007 s.58, including grossed-up Gift Aid and qualifying pension contributions. It drives the personal-allowance taper, HICBC and the childcare cliff; it is not simply gross salary.
Do pension contributions reduce adjusted net income?
Yes. A relief-at-source contribution is deducted grossed-up (net ÷ 0.8). Net-pay and salary-sacrifice contributions already reduce your taxable pay at source, so they lower the income figure without a separate deduction. Either way, £1 of gross contribution reduces adjusted net income by £1.
Does Gift Aid reduce adjusted net income?
Yes — grossed up. A £80 donation is treated as £100 of Gift Aid and deducted in full, because the charity has reclaimed the basic-rate tax.
Why does adjusted net income matter at £100,000?
Above £100,000 the personal allowance is withdrawn at £1 for every £2 until it is nil at £125,140. The marginal rate depends on tax regime and income type: the familiar 60% figure is the rUK non-savings case, while Scottish non-savings income can differ. The £100,000 childcare income test is separate.
— Related
- Income tax traps: the complete guide
- Tax trap calculator — the contribution to bring this below £100,000
- High Income Child Benefit Charge calculator
- The £100k / 60% tax trap, explained
- Threshold income vs adjusted income — do not mix up the two pension tests
- Top-slicing relief guide — why the full bond gain still enters adjusted net income
- How every figure is verified against official sources
— When you're ready
Put this calculation in the client file.
ParaplanAI is the paraplanner's calculation workbench: the same engine as this free tool, plus document extraction, full multi-event workflows, and a branded compliance annex PDF with the step-by-step working and its HMRC references — the file a compliance officer signs.