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Posted Tue, 09 Aug 2022 10:12:57 GMT by ALEX
Hi, I manage my taxable income (via pension contributions) to stay below the the £100k limit and make the quarterly confirmations to that effect. However for the 21/22 tax year it appears the value of my health care and other work benefits (as per p11d) significantly increased above pushing the income over £100k (before tax return adjustments). I have made charitable donations in both the prior and current years which should bring me under £100k on the net adjusted income for the 21/22 tax return. I have 2 questions. Firstly, what do HMRC (or relevant body) assess when reviewing TFC and additional hours funding? Is it net adjusted income as per prior years tax return? Secondly, am I correct in believing charitable donations made in the current year can be included in the prior year return to further reduce the assessed figure? Many thanks in advance
Posted Wed, 10 Aug 2022 07:27:56 GMT by HMRC Admin 17

Yes, when reviewing an individual's entitlement to Tax Free Childcare (TFC), HMRC calculate your Net Adjusted Income
based on the  previous year's tax return:        

Personal Allowances: adjusted net income  .

For guidance re: carrying back charitable donations, please refer to HS342:                                               

HS342 Charitable giving (2019)  .

For any other TFC-related queries, please call oor Childcare Service helpline: 

Childcare Service helpline    .

Thank you.

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