Viewing breakdown for:
Adjusted Net Income
£116,250
⚠️ £100k trap
Annual Net Pay
£73,932
£6,161/mo
Income Tax
£37,182
Marginal: 60%
NI
£4,336
Disposable
£52,332
Net – Nursery + CB
30HRS & TFC
NOT ELIGIBLEMax TFC
£2,000
Reduce ANI by £16,250. If actioned now, eligible from Apr–Jun.
CHILD BENEFIT
£1,359/yr
HICBC
-£1,359
100%
Net: £0/yr
🎯 Sacrifice vs. Pay Full — Childcare Decision
Should you sacrifice £16,250/yr extra pension to unlock benefits?
📋 HOW TO SACRIFICE THE EXTRA £16,250/yr
Current Sacrifice
5.0%
£463/mo
New Sacrifice %
19.6%
£1,817/mo
Increase
+14.6%
+£1,354/mo
Tell HR/payroll to increase pension sacrifice from 5.0% to 19.6% of gross salary. Each monthly payslip will show £1,354 more deducted.
| ❌ CURRENT | ✅ OPTIMISED | |
|---|---|---|
| 📉 EXISTING SALARY SACRIFICES | ||
| Existing Pension Sacrifice | £5,550/yr | £5,550/yr |
| 🎯 OPTIMISED — SPREAD MONTHLY | ||
| Extra Pension (monthly) | — | £16,250/yr |
| Adjusted Net Income | £116,250 | £100,000 |
| Personal Allowance | £4,445 | £12,570 |
| Income Tax | £37,182 | £27,432 |
| National Insurance | £4,336 | £4,011 |
| Annual Take-Home | £73,932 | £67,757 |
| 30 Hrs Eligible? | ❌ No | ✅ Yes |
| Tax-Free Childcare | ❌ None | ✅ £2,000/yr |
| Annual Nursery Bill | £21,600 | £8,800 |
| Child Benefit (net) | £0 | £0 |
💰 SAVINGS BREAKDOWN FROM EXTRA £16,250 SACRIFICE
Income Tax Saved
£9,750
NI Saved
£325
PA Restored
£8,125
Nursery Saved
£12,800
CURRENT
Disposable Income
£52,332
Take-home – full nursery + CB
OPTIMISED
Disposable Income
£58,957
Less pay + funded nursery + CB
Net Gain: £6,625/year
Sacrificing £16,250/yr cuts take-home by £6,175 but you save £9,750 tax, £325 NI, £12,800 nursery. Plus £16,250 goes into your pension pot!
📈 Monthly: +£552/mo disposable + £1,354/mo into pension
🔒
Sacrifice vs Pay Analysis
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🏦 Pension Allowance & Strategy
Annual Allowance Used£8,880 / £60,000
Salary Sacrifice
£5,550
Employer
£3,330
SIPP (gross)
£0
Key Pension Rules (2025/26):
• Annual Allowance (AA): £60,000 total — includes all contributions: employee sacrifice + employer + SIPP (gross)
• Carry Forward: Unused AA from previous 3 years can be used
• Tapered AA: If "adjusted income" exceeds £260k, AA reduces by £1 per £2 over (min £10k)
• MPAA: £10,000 if you've already accessed pension flexibly (drawdown)
• Tax relief limit: Max relief on personal contributions = 100% of UK earnings
• Remaining AA: £51,120
• Annual Allowance (AA): £60,000 total — includes all contributions: employee sacrifice + employer + SIPP (gross)
• Carry Forward: Unused AA from previous 3 years can be used
• Tapered AA: If "adjusted income" exceeds £260k, AA reduces by £1 per £2 over (min £10k)
• MPAA: £10,000 if you've already accessed pension flexibly (drawdown)
• Tax relief limit: Max relief on personal contributions = 100% of UK earnings
• Remaining AA: £51,120
⚠️ Important: AA and ANI are different tests
Annual Allowance (£60,000)
Counts ALL contributions:
✅ Your salary sacrifice
✅ Employer contributions
✅ SIPP (grossed up)
Exceeding triggers AA tax charge
✅ Your salary sacrifice
✅ Employer contributions
✅ SIPP (grossed up)
Exceeding triggers AA tax charge
Adjusted Net Income (for HICBC, childcare, PA)
Only YOUR contributions reduce ANI:
✅ Salary sacrifice
❌ Employer contributions
✅ SIPP (grossed up)
✅ Gift Aid (grossed up)
✅ Salary sacrifice
❌ Employer contributions
✅ SIPP (grossed up)
✅ Gift Aid (grossed up)
🔄 Where to Sacrifice: Company Pension vs SIPP?
| SALARY SACRIFICE | SIPP | |
|---|---|---|
| Income Tax Relief | ✅ Automatic (pre-tax) | ✅ 20% at source, claim rest via SA |
| NI Saving (Employee) | ✅ 8% / 2% | ❌ None |
| NI Saving (Employer) | ✅ 15% (often shared) | ❌ None |
| Reduces ANI? | ✅ Yes | ✅ Yes (when grossed up) |
| Flexibility | ⚠️ Locked to employer | ✅ Full control, any provider |
| Investment Choice | ⚠️ Limited to scheme | ✅ Wide range |
| Can Exceed Earnings? | ✅ Via employer contribution | ❌ Capped at earnings |
💡 Best strategy: Maximise salary sacrifice first (saves NI on top of income tax), then top up via SIPP for flexibility and investment choice. On £111,000 salary, sacrifice saves ~2% NI = £111/yr extra vs SIPP. Your employer also contributes 3% (£3,330) — some employers share their 15% NI saving too. Ask HR!
🔒
Pension Allowance Tracking & Strategy
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📋 HMRC Tax Rules — 2025/26
rUK rates · Click to expand
📊 Income Breakdown
Gross Salary£111,000
Bonus£10,000
Pension Sacrifice-£5,550
Health BIK£800
Total Income£116,250
Adjusted Net Income£116,250
Personal Allowance£4,445
🏛️ Tax Bands
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| Basic Rate | 20% | £37,700 | £7,540 |
| Higher Rate | 40% | £74,105 | £29,642 |
| Total | £37,182 | ||
📅 Monthly Breakdown
| Month | Gross | Bonus | Pen.Sac | Other Sac | Tax | NI | SL | Net | |
|---|---|---|---|---|---|---|---|---|---|
| April | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| May | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| June | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| July | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| August | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| September | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| October | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| November | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| December | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| January | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| February | £8,788 | £0 | -£463 | — | -£2,765 | -£345 | — | £5,678 | |
| March | Bonus | £18,788 | £10,000 | -£463 | — | -£6,765 | -£545 | — | £11,478 |
| Total | £115,450 | £10,000 | -£5,550 | — | -£37,182 | -£4,336 | — | £73,932 | |
💡 Optimisation Tips
critical£100k Personal Allowance Trap
ANI of £116,250 is in the 60% effective zone. Increase pension by £16,250 to restore full PA — saves ~£9,750.
criticalChildcare Benefits Lost
ANI exceeds £100k. Missing 30 Free Hours & Tax-Free Childcare (up to £2,000/yr). See Sacrifice vs Pay panel.
highSIPP Opportunity
Net SIPP of £13,000 brings ANI to £100k. 40% relief + PA restoration.
highHICBC Clawback
Losing £1,359 Child Benefit to HICBC (100%). Pension to bring ANI below £60k.
mediumGift Aid
Gift Aid reduces ANI. Each £1 donated costs ~38p after relief in the £100k trap zone.
🤖 AI Tax Assistant Venice AI
Knows your full dashboard. Ask about pension, childcare, sacrifice strategy, £100k trap…
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⚠️ Not financial advice. Consult a tax advisor. HMRC 2025/26 rates.