Adjusted Net Income and Childcare Tax Free

Hi All, I’m aware threads of this type have been asked countless times before but I’m still unclear as the guidance doesn’t consistently cover how to treat net pay pension arrangements or EVs to calculate adjusted net income. Can you please help clarify if I have interpreted “adjusted net income” to determine tax free childcare and free hours eligibility correctly using the example below: Gross Pay: £120,000 EV: £10,000 (salary sacrifice) Pension: £15,000 (‘net pay’ arrangement) Car Benefit Tax Charge: £1,000 Adjusted net income is £96,000 (£120,000-£10,000-£15,000+£1,000). Two questions if you can help please: 1) Is this correct? 2) Does the same apply in calculating personal allowance ie the whole remains as adjusted net income is below £100K? Thanks again.

Hi TaxableNovice,
Yes that would correct based on those figures.
Detials on adjusted net income can be found at:- Personal Allowances: adjusted net income
Thank you.