Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 03 Jan 2023 12:02:09 GMT by adrienctx
Hi, I'm trying to understand if I qualify for Tax free childcare, with an income > 100k before any salary sacrifice is applied. Based on the information on the website (, it looks like I should deduct the amount sacrificed into my pension (based on Step 3). However, on a phone call with Tax free childcare, the agent I talked to told me they could only deduct money that is paid to "private" pension, and not to "employment based" pension. This seems odd, as I could not find this information anywhere on the website. My pension scheme is employment based, but the salary sacrifice is applied before income tax/NI contributions are applied. So as I understand it, based on website, I do qualify for the benefit, but based on the agent I had on the phone, I do not qualify (as my pension is not private). Have I misunderstood anything? Many thanks!
Posted Fri, 06 Jan 2023 16:03:22 GMT by HMRC Admin 32

The contributions are step 3 are employee contributions. Contributions made under Salary Sacrifice are treated as Employer Contributions.

If you need further clarification please contact the helpline again.

EIM42780 - Salary sacrifice: contributions to a registered pension scheme: income tax effects

Thank you.

You must be signed in to post in this forum.