Adjusted Net Income
UK tax glossary · Last reviewed: April 2026
Adjusted Net Income (ANI) is your total income minus certain reliefs: pension contributions (including salary sacrifice), Gift Aid donations grossed up, and trading losses. HMRC uses ANI to determine whether you lose your Personal Allowance, qualify for Marriage Allowance, must pay the High Income Child Benefit Charge, or owe the personal savings allowance at higher-rate level.
For the Personal Allowance taper, ANI above £100,000 triggers a £1 reduction for every £2 of excess — eliminating the allowance at £125,140. A £10,000 pension contribution can save the allowance (and the effective 60% marginal rate) for someone earning £105,000.
ANI differs from taxable income: it is the figure on which certain clawbacks are tested, not the amount on which your final tax is calculated. Understanding ANI is essential for planning in the £100,000–£125,140 range.
Worked example
Gross income: £108,000. Pension contribution: £8,000 (net). Grossed up: £10,000. ANI: £108,000 − £10,000 = £98,000. Personal Allowance: fully intact at £12,570. Without the pension contribution ANI would be £108,000, reducing the allowance by £4,000 and costing an extra £1,600 in tax.
Common questions
Does Gift Aid reduce my Adjusted Net Income?
Yes. Charitable donations under Gift Aid are grossed up by 25% and deducted from ANI. A £800 donation grosses to £1,000 and reduces ANI by £1,000, which can be valuable near thresholds.
How do I find my Adjusted Net Income on a Self Assessment return?
It is calculated on the SA100 working sheet. HMRC's online return computes it automatically once you enter income and reliefs.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.