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Posted Fri, 22 Nov 2024 14:00:17 GMT by rymanani
I am looking to understand how adjusted net income is calculated, in relation to the 15 hours childcare funding £100k threshold. The guidance (https://www.gov.uk/guidance/adjusted-net-income) refers to "some rental income" to be included as income. Following the income (https://www.gov.uk/income-tax) rental income received that is less than the rent a room relief would not be treated as income. Is it the case that if I had for example, a £95,000 salary, and a £7,000 rental income, all of which is eligible for the rent a room relief, then my adjusted income would be £95,000?
Posted Tue, 26 Nov 2024 10:12:24 GMT by HMRC Admin 18 Response
Hi, It would be the net profit from your rental income. Details on adjusted net income at:
Personal Allowances: adjusted net income
Thank you.
Posted Tue, 26 Nov 2024 14:33:44 GMT by rymanani
Thank you. So assuming I have £7,500 of rental income, less £7,500 rent a room relief, net income would be nil.
Posted Thu, 05 Dec 2024 13:04:34 GMT by HMRC Admin 20 Response
Hi,
If you qualify for rent a room relief, yes.
Thank you.

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