Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 20 May 2024 10:21:25 GMT by A16XJD
Please could a HMRC Admin respond to the below: Relating to the eligibility questions for Tax Free Childcare, i need to answer the question of whether my 'expected adjusted net income' for the year will end up as under £100k At the end of the last tax year in March, i received a bonus payment in company shares. The award was defined as being a set number of shares so the specific value of this was only determined on the day. It's not unfeasible that i might receive another share-based bonus at the very end of this tax year (based on future company performance until then). In this instance, how should i be factoring this into my 'expected' earnings? Obviously if i had any 'valid' expectations on what the share price would be in a years time, id be able to make a lot of money doing something else! -If bonuses themselves are only potential/discretionary (ie not certain) should they be included in 'expected earnings' (irrespective of being in cash or shares)? -If the bonus would be in shares, how should I assess the value of these in advance of the issue date given it is unknown what the value will be in march? The share price itself is obviously fairly volatile in value, with a spectrum of potential outcomes which include a negligible value. Do i need to use the share price at the date of the reconfirmation questions to factor into this? Thanks,
Posted Wed, 22 May 2024 14:13:46 GMT by A16XJD
Hello, do you know how long it might take to get a response on this one? I submitted this question 2 days ago. Thanks
Posted Thu, 23 May 2024 14:39:40 GMT by HMRC Admin 25 Response
Hi A16XJD,
If your bonus is not certain, this would not need to be included in expected earnings.
For more advice, contact our Child Benefit helpline here:
Child Benefit: general enquiries
Thank you. 

 
Posted Wed, 23 Oct 2024 18:27:55 GMT by Simon Murray
Good evening, I am trying to work out my adjusted net income for the child benefit high income charge. I have a basic salary with shift pay and overtime. I receive annual profit share from my company based on the companies performance, this is not guaranteed every year. Do I declare this as part of my adjusted net income based on it not being guaranteed?
Posted Wed, 30 Oct 2024 12:27:00 GMT by HMRC Admin 20 Response
Hi Simon,
Details of what to include cam be found at:-  Personal Allowances: adjusted net income
Thank you.

You must be signed in to post in this forum.