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Posted Mon, 25 Nov 2024 20:11:50 GMT by Chumpynose
I keep going round in circles on this and am still confused. I've got a salary of £100k where I pay 10k into a workplace pension - deducted before tax. I have another income of around £16k with no pension deductions. So far net adjusted income of £106k If I pay 5k into a private pension with post tax income (multiplied by 1.25 - 6250) does my net adjusted income become £99,750 after self assessment and if so, is this taken into consideration when looking at tax free childcare/free childcare hours?
Posted Fri, 29 Nov 2024 09:38:03 GMT by HMRC Admin 21 Response
Hi,
Your adjusted net income calculation is correct, and yes, your adjusted net income is what your tax free childcare entitlement is based on.
Personal Allowances: adjusted net income.
Thank you.
Posted Sun, 01 Dec 2024 15:42:40 GMT by newbie910
I am a contractor with daily rate of £550 but i am not sure if my contract will last for 1 year . Under these circumstances how can i calculate my adjusted net income ?
Posted Thu, 05 Dec 2024 16:41:31 GMT by HMRC Admin 20 Response
Hi,
Please see Personal Allowances: adjusted net income
Thank you.

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