Calculate your ANI to find your Personal Allowance, Child Benefit charge threshold, Personal Savings Allowance, and more.
Calculate Your Adjusted Net Income
Total Gross Income
Adjusted Net Income (ANI)
Personal Allowance (after abatement)
PA Reduction (£100k trap)
Effective Marginal Rate in trap zone
Personal Savings Allowance
Child Benefit Charge status
Starting rate for savings available
All figures are based on 2025/26 UK tax year thresholds. This calculator is for guidance only. Seek professional advice for complex situations.
What is Adjusted Net Income?
Adjusted Net Income (ANI) is the figure HMRC uses as the basis for several important tax calculations. It is not the same as your taxable income or your gross income. ANI is your total income from all sources minus specific deductions — primarily personal pension contributions (on a gross basis), Gift Aid donations (on a gross basis), and allowable trading losses.
Understanding your ANI is essential if your income is near any of HMRC's key thresholds: £17,570, £50,270, £60,000, £80,000, £100,000, or £125,140. Each of these points triggers a change in how much tax you pay or what benefits you receive.
2025/26 Key ANI Thresholds
ANI Level
What Changes
Below £17,570
Starting rate for savings may apply (0% on up to £5,000 savings interest)
Up to £50,270
Basic rate taxpayer — £1,000 Personal Savings Allowance
£50,271 – £125,140
Higher rate taxpayer — £500 Personal Savings Allowance
£60,000 – £80,000
High Income Child Benefit Charge applies (tapers)
Above £80,000
Full High Income Child Benefit Charge (100% of benefit)
£100,001 – £125,140
Personal Allowance reduced — 60% effective marginal rate
Above £125,140
No Personal Allowance, no Personal Savings Allowance
How Pension Contributions Reduce ANI
Making personal pension contributions is the most common and most tax-efficient way to reduce your ANI. The key is to use the gross contribution amount. If you contribute to a relief-at-source scheme (such as a SIPP), the provider claims basic rate relief on your behalf, so your actual payment is 80% of the gross contribution. Always enter the gross figure.
For example, if your ANI is £110,000 and you make a gross pension contribution of £10,001, your ANI drops to £99,999, restoring your full Personal Allowance of £12,570. The contribution cost you about £6,000 net but delivered £2,514 in additional allowance worth £40% tax relief on that restored allowance — an exceptional return.
Gift Aid Donations and ANI
Like pension contributions, Gift Aid donations are deducted from total income when calculating ANI. The gross amount is your cash donation divided by 0.8 (basic rate gross-up). A £800 cash donation has a gross Gift Aid value of £1,000 for ANI purposes. Higher rate taxpayers can claim additional relief via Self Assessment on top of the basic rate relief the charity already received.
Child Benefit and the High Income Charge
The High Income Child Benefit Charge applies when either parent in a household has ANI over £60,000. The charge tapers: 1% of Child Benefit received for every £200 of ANI above £60,000. When ANI reaches £80,000, the full benefit is clawed back. Pension contributions can reduce ANI below the threshold, keeping Child Benefit income effectively tax-free.
Frequently Asked Questions
What is Adjusted Net Income? +
Adjusted Net Income (ANI) is your total taxable income from all sources minus certain deductions such as gross pension contributions, gross Gift Aid donations, and trading losses. It is the figure used by HMRC to assess your Personal Allowance entitlement, High Income Child Benefit Charge, and Personal Savings Allowance.
How is ANI different from taxable income? +
Taxable income is your income after the Personal Allowance has been deducted. ANI is calculated before the Personal Allowance is applied but after subtracting pension contributions, Gift Aid, and losses. ANI is used to determine what Personal Allowance you are entitled to in the first place.
Why does ANI matter above £100,000? +
Once ANI exceeds £100,000, your Personal Allowance is reduced by £1 for every £2 of ANI above that threshold. At ANI of £125,140 or above, the Personal Allowance is fully withdrawn, creating an effective 60% marginal rate on income between £100,000 and £125,140.
How do pension contributions affect ANI? +
Gross pension contributions (including the tax relief added by your scheme) are deducted from your total income when calculating ANI. This means making pension contributions can lower your ANI, restore your Personal Allowance, reduce the High Income Child Benefit Charge, and improve your Personal Savings Allowance band.
What is the High Income Child Benefit Charge threshold in 2025/26? +
The High Income Child Benefit Charge begins at ANI of £60,000 and the full charge applies at ANI of £80,000. Between these two thresholds, the charge tapers at 1% of Child Benefit received for every £200 of ANI above £60,000.
How does ANI affect the Personal Savings Allowance? +
Basic rate taxpayers (ANI up to £50,270) receive a £1,000 Personal Savings Allowance. Higher rate taxpayers (ANI £50,271 to £125,140) receive £500. Additional rate taxpayers with ANI above £125,140 receive no Personal Savings Allowance.
What is the starting rate for savings? +
The starting rate for savings allows up to £5,000 of savings interest to be taxed at 0% if your non-savings income (excluding savings interest) is below £17,570 after the Personal Allowance. For every £1 of non-savings income above the Personal Allowance, the starting rate band reduces by £1.
Are Gift Aid donations deducted from ANI? +
Yes. Gross Gift Aid donations (the amount you donate plus the 25p per £1 basic rate relief) are deducted from total income when calculating ANI. A £800 cash donation has a gross value of £1,000 for ANI purposes.
Can trading losses reduce my ANI? +
Yes. Allowable trading losses can be offset against total income and reduce your ANI for the year. This applies to losses from self-employment or partnerships that meet HMRC's trading loss relief rules.
Does dividend income count towards ANI? +
Yes. Dividend income is included in total income and therefore affects ANI. The £500 dividend allowance (2024/25 onwards) means you only pay tax on dividends above this, but the gross amount still counts toward your ANI.
Can I use salary sacrifice to lower my ANI? +
Salary sacrifice pension contributions reduce your contractual gross pay before tax, which directly reduces your total income and therefore your ANI — more effectively than personal contributions made outside salary sacrifice. However, the pension annual allowance still caps the total that can go in.
Where can I find HMRC guidance on ANI? +
HMRC publishes guidance in their Income Tax manuals and via the gov.uk adjusted income pages. The official SA100 Self Assessment guide also explains the specific adjustments and how to calculate your adjusted net income for the tax year.