UK How to calculate Adjustable Net Income for Child Benefit Question: 12 on Self Assessment?


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Hi,
On Question 12 in the Self Assessment (Tailor your return 12 - Was your income over £50,000?), how do we calculate the Adjustable Net Income using Salary from Full Time job and Rental Income?
My friend receives a GROSS salary of £40K.
From his Gross Pay
-his Employer deducts around £5000/annum as Pension Contribution
-his Employer deducts Tax of around £5000
-his Employer deducts National Insurance of around £5000
At the end his Net Income (take home) from his salary is £25K/annum.
What will be his adjustable net income? Does he need to use his gross pay or net pay?

The question talks about deducting pension, so can he deduct his pension contribution from the gross pay?
He is also receiving around £24K as rent before all deductions and expenses.
From his rent he has expenses like property repairs, insurances, services like gas safety, management fee, and mortgage interest.
Can he deduct all these except mortgage interest before calculating Adjustable Net Income?
Thanks,
 
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Truemanbrown

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Adjusted net income is income (before personal allowances) less pension contributions (grossed up where the employer has given you relief at the basic rate) and gift aid payments. Add back payments to trade unions or police organisations.

With regards to the rental income, mortgage is no longer a deductible expense when calculating rental income and, therefore, Adjustable Net Income. The other items should be a deductible expense when calculating rental income and, therefore, Adjustable Net Income.
 

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