WealthR · Free tools · Adjusted net income

Adjusted net income & the £100k line

Your salary isn't the number that matters — your adjusted net income is. Add your pension sacrifice, an EV car scheme and your bonus, and see exactly where you land against the £100,000 personal-allowance taper and childcare cliff.

2026/27 rates England, Wales, NI & Scotland No sign-up
Your headline salary before any sacrifice.
Salary sacrifice — the levers
Comes off gross pay before tax & NI → lowers ANI £-for-£.
A slice of the list price is added back as a taxable benefit (4% in 2026/27). One car in the free tool — Pro handles several.
Your adjusted net income
£98,600
You're £1,400 under the £100k line — full personal allowance and childcare kept.
£80k£100k£125k
Without sacrifice
£118,000
salary + bonus
Tax + NI saved
£11,780
marginal rate ~42%
Pension sacrifice−£15,000
EV sacrifice−£6,000
EV benefit-in-kind (added back)+£1,600
Bonus / overtime+£8,000
Pro Get under £100k — precisely
You're already under £100,000. Pro shows how much headroom you have before your next bonus tips you over, and what each lever is worth.
  • The exact sacrifice to get under £100k, and what it's really worth
  • The childcare cliff in £ — Tax-Free Childcare + free hours you'd keep or lose
  • Multi-year as EV benefit-in-kind climbs 4→5→7→9% and the 2029 pension-NI cap bites
  • Share schemes (SIP vs SAYE) and your real numbers, saved and re-run each bonus season
Try WealthR Pro free →

Illustration, not advice. Figures use standard 2026/27 assumptions and a simplified employment-income model — your payslip and scheme rules may differ.

Why your salary stopped being the number that matters

For a lot of people the payslip is a menu now, not a single figure. Once you're choosing pension sacrifice, a car scheme, share plans and the rest, the number the tax system actually keys off is your adjusted net income — roughly your taxable income for the year, after things like personal pension contributions and Gift Aid come off.

Salary-sacrifice items (pension, EV car, SIP partnership shares) come off your gross pay before tax, so they lower that number. Taxable perks — private medical cover, a company car — get added to it. Not everything pulls the same way, which is exactly why it helps to see it in one place.

The two cliffs at £100,000

At £100,000 of adjusted net income your tax-free personal allowance is withdrawn by £1 for every £2 over the line, gone entirely by £125,140 — an effective rate of about 60% across that band. And if you've young children, Tax-Free Childcare and the free-hours entitlement stop completely the moment you go a pound over. Both are cliff edges, not gentle slopes — so where you land relative to £100,000 can be worth thousands.

A quick word if you're in Scotland

The £100,000 thresholds are UK-wide. But income tax rates differ in Scotland, so the tax you save on a sacrifice — and your marginal rate — are worked out on the correct band set. Pick your region above and the figures follow it.

Want the full story? Read how the modern payslip fits together, or the dedicated salary sacrifice pension calculator.

Frequently asked

What counts towards adjusted net income?
Broadly: salary, bonus and overtime, taxable benefits (like a company car or private medical cover), plus savings, dividend and rental income — less grossed-up personal pension contributions and Gift Aid. Salary sacrifice has already reduced your gross salary, so it lowers ANI before you even start.
Does an EV salary sacrifice really lower my ANI?
Yes, on the way out — the sacrifice comes off gross pay. But the car is a benefit-in-kind, so a slice of its list price is added back (4% in 2026/27, rising to 9% by 2029/30). The net effect is the sacrifice minus that add-back, and it shrinks a little each year as the rate rises.
Is this advice?
No — it shows how the rules work and what your numbers look like. It's general information, not financial, tax or investment advice, and WealthR isn't FCA-authorised. Whether any scheme suits you depends on your whole situation; for pensions or significant sums, speak to a qualified, FCA-regulated adviser.