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Posted Thu, 23 Mar 2023 10:32:31 GMT by paulgregory1985
Hi, I'm trying to work out if I qualify for tax free childcare based on my adjusted net income, but am unsure if I am working this out correctly, can you confirm if this is correct based on following this guide Salary = £109,500 Bonus = £3,285 PMI Benefit = £522 Total Net Income = £113,307 Work Place Pension Contributions (Salary Sacrifice) = £14,009 Adjusted Net Income = (£113,307-£14,009) £99,298 I called up HMRC to discuss but was confused when they mentioned under net vs over net in regards to pension contributions and whether my work place pension scheme contributes in reducing my adjusted net income?

[Display name amended - Admin] 
Posted Wed, 29 Mar 2023 11:15:47 GMT by HMRC Admin 20
Hi paulgregory1985,

Pension contributions under a net pay arrangement are deducted before tax is calculated and deducted, contributions not under net pay are not deducted before tax is calculated.
You will need to contact our Childcare Service helpline if you have any queries regarding the calculation on 0300 123 4097.

Thank you.

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