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Posted Mon, 09 May 2022 12:25:54 GMT by qmfm
Good afternoon Please can you help with the following questions: 1. I expect to receive a bonus on 31st March 2022, however this is not guaranteed. If calculating my expected income now, should I include the expected bonus or should I only include it if and when received? 2. I pay into a pension before tax via my employer. Should I deduct this amount as part of the adjusted net income? Thank you
Posted Wed, 11 May 2022 10:37:45 GMT by HMRC Admin 19

If you have an idea of what the bonus would be you could include this.

You would deduct the pension contributions.

Thank you.
Posted Thu, 12 May 2022 08:35:34 GMT by qmfm
For anyone else needing help to understand if and when to consider bonuses as part of calculating adjusted net income for the purpose of applying for 30 hours tax free childcare, I've now spoken to a very helpful person at the childcare helpline and she confirmed - as soon as you're aware of the bonus amount and if at that point it takes you over the threshold of 100k, you should no longer renew your childcare code. The existing code will remain valid until expiry. You can renew again, if your income drops below 100k but not clear if this is from the next financial year or when to calculate this from...

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