UK Adjusted Net Income Calculator

Adjusted net income (ANI) is your total taxable income for a tax year, minus a few specific deductions — the main ones being pension contributions paid from your net pay (grossed up) and Gift Aid donations (grossed up). It is NOT the same as your gross salary or your P60 'pay'. HMRC uses this single figure to decide three of the most expensive thresholds in the UK tax code: the £100,000 Personal Allowance taper, the £60,000 High Income Child Benefit Charge, and the £260,000 tapered pension Annual Allowance.

Because it controls thresholds where £1 of income can cost you far more than £1 of tax. Cross £100,000 and every extra £2 of ANI strips £1 of Personal Allowance — an effective 60% marginal rate. Cross £60,000 with children and you start losing Child Benefit. Cross £260,000 and your pension Annual Allowance tapers. The good news is symmetrical: a pension contribution or Gift Aid donation reduces your ANI pound-for-pound, so it can pull you back under a threshold and unlock relief worth far more than the contribution itself.

It depends how they're made. Relief-at-source contributions (the kind most personal and workplace pensions use, where the provider adds 20% for you) DO reduce ANI — you deduct the grossed-up amount (what you paid ÷ 0.8). Salary-sacrifice and 'net pay' workplace contributions never appear in your taxable income in the first place, so they've already reduced your ANI and you must not deduct them again. This calculator asks only for relief-at-source contributions to avoid double-counting.

Yes. Charitable donations you make under Gift Aid are grossed up (donation ÷ 0.8) and deducted from your total income to reach ANI — exactly like relief-at-source pension contributions. So a £800 donation becomes a £1,000 deduction. For someone just over £100,000, Gift Aid is a genuine way to restore Personal Allowance while supporting a cause.

Almost everything taxable: salary and taxable benefits-in-kind (company car, medical insurance), self-employment profit, rental profit, savings interest above your allowances, and dividends. Tax-free income is excluded — ISA interest and dividends, the tax-free part of a pension lump sum, and premium bond wins don't count. Enter your salary and any other taxable income separately below.

If your adjusted net income is, say, £110,000, you need to reduce it by £10,000 to reach £100,000. Via relief-at-source that means paying £8,000 net (the provider adds £2,000). Doing so restores your full £12,570 Personal Allowance and removes the 60% band — the effective relief on that £8,000 can exceed 60% once the reclaimed allowance is counted. This calculator shows the exact top-up needed for your numbers.