HENRY Knowledge · 6 September 2026

What is adjusted net income?

A practical checklist for assembling adjusted net income without double-counting pension deductions.

Mark Graham, founder and product editor · General education, not personal advice. AI-assisted content; no independent professional review claimed. Tax examples concern 2026/27.

It is not your take-home pay

Adjusted net income (ANI) starts with taxable income before Personal Allowances and subtracts specified reliefs. Employment benefits, savings interest, dividends, rental income and other taxable sources can matter, not just salary. Eligible relief-at-source pension payments and Gift Aid donations are deducted using their grossed-up amounts. A £800 eligible net payment corresponds to £1,000 gross. Follow the complete HMRC adjusted net income calculation, including its adjustments for less common circumstances.

A simple reconciliation

Suppose your taxable employment income is £108,000, with £2,000 taxable benefits and £1,000 savings interest included in the calculation. That makes £111,000 before the relevant deductions. If you also make an £8,000 net relief-at-source pension payment, its £10,000 gross amount reduces this illustrative ANI to £101,000. This example assumes no other income or adjustments.

Avoid counting the same contribution twice

If payroll has already reduced taxable pay through salary sacrifice or a net-pay pension arrangement, do not subtract that same reduction again. Confirm how your scheme operates rather than assuming every payment called a “pension contribution” is treated identically.

Build a one-page record

• List each source of income and whether its figure is final or estimated.
• Keep pension payment evidence and identify the contribution method.
• Record Gift Aid separately from ordinary donations.
• Reconcile estimates after a bonus, pay rise or year-end statement.

Keep documents in your own secure records; do not send account statements to HENRY. The tax planner deliberately models only employment income and salary sacrifice. Its headline ANI result is not a substitute for this full reconciliation. If you are close to an important threshold, resolve uncertain figures before making a decision.