Adjusted Net Income & Mileage allowance relief

Adjusted Net Income & Mileage allowance relief

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Does Mileage Allowance Relief (MAR) reduce Adjusted Net Income (ANI)? I'm trying to work out if you reduce the MAR to get the ANI in order to calculate whether client will get 20 or 40% tax relief. Say client is on £46,000 and the difference between HMRC mileage rates and the rate he received was £1,000, client would get £400 tax relief. But how much tax relief would he get if he makes a gross pension contribution of £1,000, (I.E. £800 net). Would he:

A - receive 40% tax relief on both pension contribution and mileage allowance claim

B - receive 20% tax relief on pension contribution and 40% relief on mileage allowance claim

Thanks.

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