Adjusted net income calculator

What is adjusted net income?

Start with all taxable income: salary and taxable benefits, self-employment profit, interest, dividends and rent. Subtract pension contributions that were paid from taxed money, grossed up, so a £4,000 relief-at-source payment counts as £5,000. Subtract Gift Aid the same way. What remains is adjusted net income. Salary sacrifice and net-pay pension contributions never appear, because that pay was never taxable in the first place, a £110,000 salary with £12,000 sacrificed into a pension has an ANI of £98,000, safely under every £100,000 rule, while the same earner contributing £9,600 by relief at source arrives at the same £98,000 by deduction instead.

Adjusted net income formula: how to work it out

HMRC’s own steps, in order. The calculator above runs exactly these.

1. Net income: every source of taxable income added together, minus reliefs such as trading losses. Salary sacrifice and net-pay pension contributions are already out of this figure.
2. Minus Gift Aid, grossed up: what you gave divided by 0.8.
3. Minus relief-at-source pension contributions, grossed up: what left your bank account divided by 0.8.
4. Plus any tax relief you claimed on trade union or police organisation subscriptions.

Worked: a £110,000 salary with £9,600 paid into a personal pension by relief at source. £9,600 ÷ 0.8 = £12,000 gross, so £110,000 − £12,000 = £98,000 adjusted net income.

Which thresholds does adjusted net income decide?

Three: the £100,000 cliff that ends free childcare support, the £100,000-£125,140 personal allowance taper, and the £60,000-£80,000 High Income Child Benefit Charge. All three test ANI, not salary, which is why a pension contribution can rescue all of them at once.

• £100,000, childcare, a cliff. One pound over ends both free childcare hours and Tax-Free Childcare for the whole year. For a parent with two children in nursery this can be worth more than the pay rise that caused it.
• £100,000–£125,140, the allowance taper. £1 of allowance lost per £2 of ANI, producing an effective marginal rate above 60%, measured exactly on our £120,000 page.
• £60,000–£80,000, the Child Benefit charge. 1% of Child Benefit is clawed back per £200 of ANI above £60,000, gone entirely at £80,000.

How to reduce your adjusted net income

Pension contributions are the lever: every gross pound contributed reduces ANI by a pound, whichever arrangement you use. Salary sacrifice does it most cheaply because it saves National Insurance too. Around the thresholds above, a contribution that pulls ANI back under the line is effectively relieved at 60-100%+, the childcare cliff can make a £1,000 contribution worth several thousand pounds.

What this calculator assumes

It follows HMRC's published method but cannot see your circumstances, trading losses, payroll giving and some reliefs also adjust the figure. For self-assessment, the number HMRC computes from your return is definitive. Nothing you type here leaves your browser.

2026/27 thresholds, checked 28 August 2026 by Hadi against gov.uk's adjusted net income guidance. Method on the about page.

Gift Aid calculator

Estimate what the charity receives, your potential additional tax relief and the donation's effect on adjusted net income for 2026/27. These inputs are separate from the ANI calculation above.

Enter employment or other non-savings income after salary sacrifice and net-pay pension deductions. Assumes no savings, dividends, other reliefs or relief-at-source pension contributions. This is Gift Aid, not Payroll Giving. National Insurance is unchanged.

A qualifying donation and Gift Aid declaration are required. Your total UK Income Tax and Capital Gains Tax must cover claims by all charities you support. Additional relief may require Self Assessment or a tax-code adjustment. Scottish taxpayers receive the same charity top-up; donor relief uses the Scottish rates above the UK basic rate. Allowance restoration is included, but Child Benefit charges and childcare eligibility savings are not included in the net cost.

Sources checked 27 September 2026: HMRC Gift Aid guidance and detailed donor rules.

How to use the adjusted net income calculator

1. 1

   Start with your gross salary and add any other taxable income: rent, dividends, savings interest, freelance work.

2. 2

   Deduct your pension contributions on the correct basis for your scheme, which is where most people go wrong.

3. 3

   Deduct any Gift Aid donations, grossed up as HMRC requires.

4. 4

   Read the figure and where it sits against the £60,000 and £100,000 thresholds.

When should you use the adjusted net income calculator?

Use it before any decision that turns on the £60,000 or £100,000 thresholds, because those are measured on this figure and not on your salary.

Where to go next

• £100k tax trap calculatorTo price the 62% band this figure decides.Open
• Childcare cliff calculatorTo check whether you keep the free childcare hours.Open
• Child Benefit calculatorTo work out the Child Benefit charge on this figure.Open

All 51 calculators share one tested engine, so a figure from the adjusted net income calculator agrees with every other page here. See the full calculator index or the pay and tax guides.