Adjusted Net Income

[əˈʤʌstɪd nɛt ˈɪnkʌm]

Term

Summary:

The total income that is earned by an individual that can be taxed is called Adjusted Net Income. It is used as a basis for working out what taxes you owe.

More detail:

Adjusted Net Income is the total income earned by an individual that can be taxed. This is calculated by following these steps:

Calculate your "Net Income". First, add up your Taxable Income. This includes things like your salary, profits you make from self employment, state benefits etc. Then, take off any Tax Deductions. This includes pension contributions or trading losses.
Adjust your "Net Income". This is done by taking off Gift Aid donations and pension contributions, and adding back tax relief for payments to trade unions or police organisations

Adjusted Net Income is important as it is used as a basis for calculating taxes owed. You may need to do a tax return if it goes above a certain threshold.

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