News

Calculating Adjusted Net Income

Calculating the adjusted net income amount is necessary if any of the following apply:

  • A taxpayer is liable to an income-related reduction to the personal allowance when their adjusted net income is over £100,000 (regardless of their date of birth);
  • A taxpayer that is liable to the high income child benefit charge where they have an adjusted net income above £50,000.

In order to work out adjusted net income, you need to look at a taxpayer’s total taxable income before personal allowances and then deduct any trading losses, gift aid donations, gross pension contributions and pension contributions where the pension provider has already provided tax relief at the basic rate. To complete the calculation for adjusted net income, tax relief of up to £100 is available for payments to trade unions or police organisations and can be added back.

Taxpayers should be aware that there is no automatic entitlement to the Income Tax personal allowance.

Source: HM Revenue & Customs Tue, 11 Aug 2020 05:00:00 +0100

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

> SIGN UP FOR THE NEWSLETTER
> LOGIN

Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK