1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Adjusted Net Income

Discussion in 'Pay and conditions' started by rich_hodgetts, Nov 27, 2019.

  1. rich_hodgetts

    rich_hodgetts New commenter

    Does anyone know if teachers pension contributions are deducted from gross income when calculating adjusted net income?

    This is to try and ascertain my liability for paying back child benefit payments.

    Thanks,

    Rich
     
  2. Piranha

    Piranha Star commenter

    Not sure exactly what adjusted net income is. The liability to pay back child benefit is based on gross income, as in income before tax. I believe that pension contributions are deducted from this. Indeed, if you are near the threshold, it might be worth making extra contributions. There is a handy calculator for working it out. https://www.gov.uk/child-benefit-tax-calculator
     
  3. frustum

    frustum Star commenter

    Pension contributions come off before your taxable income is calculated, and child benefit repayments depend on that too. My husband pays extra into his company pension scheme because of this, but I don't know if that's an option for teachers.

    By the way, being in receipt of child benefit for a child under 12 (even if your other half has to pay it back) counts as full National Insurance contributions for that year. If one parent is part-time, or not continuously employed, that's very useful in the long run.
     
    Piranha likes this.

Share This Page