← Calculators/Tax year 2026/27·Last reviewed
Adjusted net income calculator
Add up your income, deduct grossed-up Gift Aid and relief-at-source pension, and read the adjusted net income that drives the £100k taper, the child benefit charge and the childcare cliff.
Free, no sign-up. Runs the same engine and the same versioned tax-year config the signed-in suite uses — nothing leaves your browser. How we verify the numbers.
Net contribution ÷ 0.8. Net-pay and salary-sacrifice pensions already reduce your income — leave at £0.
Grossed up automatically.
Adjusted net income
£110,000.00
- Total taxable income
- £110,000.00
- Less grossed-up Gift Aid
- − £0.00
- Less grossed-up pension (RAS)
- − £0.00
- Adjusted net income
- £110,000.00
- ⚠️ Over £100,000 — personal allowance tapering (60% band) and the childcare cliff.
- ⚠️ Over £80,000 — full High Income Child Benefit Charge.
For planning and illustration purposes only · Verify all inputs against source documents · This tool does not constitute financial or tax advice.
— In short
Adjusted net income is your total taxable income — salary, bonus, taxable benefits in kind, self-employment, property, dividends and savings — less grossed-up Gift Aid donations and grossed-up relief-at-source pension contributions. It is the figure HMRC uses for the personal-allowance taper above £100,000, the High Income Child Benefit Charge, and the £100,000 childcare cliff.
— 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.
— Frequently asked questions
What is adjusted net income?
It is your total taxable income less grossed-up Gift Aid and grossed-up relief-at-source pension contributions. It is the income figure HMRC uses for the personal-allowance taper over £100,000, the High Income Child Benefit Charge and the £100,000 childcare cliff — not your 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, creating a 60% effective marginal band to £125,140, and Tax-Free Childcare plus the funded hours are lost. Keeping adjusted net income at or below £100,000 avoids both.
— When you're ready
With a free account, the same engine runs inside the workbench:
- save the calc to a client file, with the audit trail and sign-off workflow
- export the branded compliance annex PDF — full working, legislative references, config version
- multi-gain, multi-scheme and prior-year history the single-screen tools don't take
- upload statements and certificates — the figures are extracted for your review
Free plan: 3 calcs / month · no card required · cancel any time. Unlimited on Pro and Firm.
— Related
For planning and illustration purposes only · Verify all inputs against source documents · This tool does not constitute financial or tax advice.