Impact of Employer's Net Insurance on Adjusted Net Income for Tax Free Childcare Purposes

Hello, My question is about the impact of employer's net insurance on adjusted net income for taxfree childcare. My income for the 2024 tax year is projected to be as follows: - Base pay £52,000 after pension contributions via salary sacrifice. - Vesting RSUs £50,000 - BIK value of Medical Insurance £713.3 This totals £102,713.3 and means I will be ineligible for tax free childcare or the 15 free hours. However, my employer requires me to cover half of the employer NIC contribution, which works out as 6.9% of the vesting RSUs. This changes my income structure as follows: - Base pay £52,000 after pension contributions via salary sacrifice. - Vesting RSUs £46,550 after covering half of employer NIC contribution - BIK value of Medical Insurance £713.3 This totals £99,263.3. Based on previous tax years, this lines up with what I see as "Taxable Income" on my payslips. My question is: which of these is my adjusted net income for the purpose of claiming tax free child care? £99,263.3 after adjusting for the employer NIC contribution or £102,713.3 without adjusting for it? Thanks!

Hi kygbk21,
If these deductions are taken from your gross pay, and not deducted before your gross pay is calculated, then they would not be factored into your ANI calculation.
Please contact Child Benefit here:
Child Benefit: general enquiries
For more advice.
Thank you.