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Posted Fri, 08 Nov 2024 14:26:59 GMT by chankie c
Should the £30k tax free portion be included within taxable income? eg If Redundancy was £35k and all other Income to that point was £70k, -> A. is the taxable income £105k (70k+35k) where it is all included? -> B. is the taxable income £75k (70k+5k) where the £30k tax free portion has been ignored? Situation B would mean the person would still be eligible for tax free childcare as thier taxable income is under £100k?
Posted Tue, 12 Nov 2024 16:04:50 GMT by HMRC Admin 34 Response
Hi,
You would not include the tax free portion to calculate the adjusted net income.
Personal Allowances: adjusted net income
Thank you

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