Week 5 Part 3

• Personal allowance is £12,570 in 2023-24​

  And ​

  You start loosing it if you earn above £100,000​

  But​

  Not if you gave to charity or paid into your private pension​

  As you need to calculate the adjusted net Income first​
• Adjusted net income is:​

  All income (salary + b-i-k + income from trade + income from property + dividends + savings)​

  less​

  • Grossed-up amount of any gift aid​
  • Grossed-up amount of any pension contribution relieved at source​
• Adjusted net income calculation​

  ​

  It is a taxpayer’s net income less grossed up amount of any gift aid and personal pension (relieved at source)​