harrietking23

Hi there, I am looking for some help to calculate my adjusted net income, which I need to validate in order to reconfirm my eligibility for tax free childcare/15 free hours which is available for 9 month olds from September. I do not need confirmation on whether I am eligible for childcare, just help in calculating the adjusted net income correctly. My current annual salary = £100,000 gross I receive a notional payment every month in relation to private health insurance via my employer = £812.76 annually I do not have any other incomes. Therefore my annual gross income for tax = £100,812.76 I also pay £146.76 into a pension every month under a 'relief at source' policy via my employer. This means I have £146.76 deducted each month from my NET pay, which my pension provider adds 20% to (£36.69 per month) from government basic rate tax relief. The grossed up value is £183.45 per month. Annual contributions from me for this pension = £1761.12 Annual grossed up contributions including the 20% basic rate tax relief = £2201.4 Given all of this, is my adjust net income calculated as follows: Annual gross income for tax (£100,812.76) minus annual 'relief at source' pension contributions from me (£1761.12) equalling £99,051.64 i.e. £100,812.76 - £1761.12 = £99,051.64 <-- Net Adjusted Income Or, should I be deducting the grossed up pension contributions? Or should I not deduct any pension contributions at all? If this is the case, please explain why. Thank you in advance!