Adjusted Net Income: What It Is and Why £100k Matters
Adjusted net income is the figure HMRC uses for several tax rules, including the Personal Allowance taper above £100,000. It is not the same thing as salary or take-home pay.
What counts toward adjusted net income?
HMRC starts from taxable income and then applies specified adjustments. This can include income from employment, self-employment, property, savings and other taxable sources. The precise figure can therefore differ from the salary shown on a job offer or payslip.
How pensions affect it
For relief-at-source pensions, HMRC uses the grossed-up contribution when calculating adjusted net income. Other pension arrangements operate differently. NetSlip's calculator lets you model salary sacrifice, net pay and relief at source separately because they do not have identical effects on payroll deductions.
Why the figure matters at £100,000
The standard Personal Allowance reduces by £1 for every £2 that adjusted net income exceeds £100,000 and is fully withdrawn at £125,140. That is why knowing adjusted net income can matter more than simply knowing headline salary.
Check the impact on take-home
Model your salary and pension method, then see the £100k taper in the results intelligence.
Open NetSlipRead the £100k tax trap guide