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Posted Thu, 27 Oct 2022 09:55:45 GMT by Rich Spencer
Hi I've tried to find an answer re the Adjusted Net Income figure used for tax free childcare but due to what I suspect is a slightly unusual situation have struggled to get an answer. I have a Defined Benefit pension scheme through my employer - I then make SIPP contributions each year but given that I need to know the Pension Input Amount from my employer (only available at the end of the tax year) I obtain this info at the start of the following tax year and make the SIPP contributions using the "carry forward" option. What I'm trying to understand is if there is any issue with this contribution being included in my adjusted net income figure for the tax year that I am ultimately using the pension allowance from? My concern is that due to timings this is only going to show after the tax year has ended from a TF Childcare perspective? Any info would be appreciated.
Posted Thu, 27 Oct 2022 11:19:02 GMT by HMRC Admin 32

Please contact the Childcare Service team for advice.

Childcare Service helpline

Thank you.
Posted Thu, 27 Oct 2022 11:41:11 GMT by Rich Spencer
Hi I did just that this morning but they couldn't answer the query and referred me to HMRC SA- I now find myself going round in circles. Cheers
Posted Thu, 27 Oct 2022 18:57:17 GMT by sportyfae
You can only ever get tax relief for the tax year the pension contribution is paid in. All that carry forward enables you to do is contribute more in a later year, it's still a contribution of the later year not the year you have carried forward the unused annual allowance from. I'm not aware of any exceptions for TFC which would alter that basic principle.
Posted Fri, 28 Oct 2022 01:58:49 GMT by Bella Boo
Not hmrc and not sure if other person (sportyfae) answered as i cant see their response but you can only carry forward the allowance. You can't carry back the contributions. So no, you can't claim it on the previous years income. Only on the income from the year the contribution was actually made.
Posted Mon, 07 Nov 2022 15:55:32 GMT by
Hi Rich Spencer,

If you are using the amount as carry forward, it would be deducted in the year that you are making the contribution.

Thank you. 


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