Sam R

Hi @HMRC Admin 8, thank you. I’d like to be completely clear what you mean when you say ‘gross income before contributions’. My payslips state a ‘Total Gross’ amount, which is calculated from a ‘Salary’ amount plus a fixed allowance (which is taxable) minus a ‘Salary Exchange’ amount, which is paid to my pension provider before tax is calculated. My understanding before was that the amount that is in adjusted net income is the ‘Total Gross’ amount. In this context, do you mean that I should actually consider the ‘Salary’ amount BEFORE salary exchange on the grounds the Salary Exchange amount is a pension contribution OR that it should be the ‘Total Gross’ amount as explained above and, when you say pension contribution, you mean any additional contribution I make from my bank account?

Hi, I want to confirm I understand the above correctly. I am working out my adjusted net income for tax free childcare and free childcare for working parents purposes as I am very close to the £100,000 mark. I receive employment , interest and rental income and a small amount of dividends. 1. Employment Income Pension contributions are deducted before my gross salary is entered on my payslips and this then carries through to my P60. So I understand that there is no further relief for pension contributions and that, for adjusted net income purposes, I use the total gross salary on my P60 or the gross salary as shown on my payslips. Is this correct? 2. Rental income The rental property is managed by an agent and the agent deducts costs such as their own fees, maintenance and repairs, administrative, factoring, some licensing / inspection costs etc before paying me the balance. I pay for other costs such as insurance, other licencing costs separately. The property has no mortgage or financing costs. Is the the rental income I need to consider for calculating my adjusted net income a) the rent as paid by the tenants to the agent, b) the amount paid by the agent to me after costs the agent incurs on my behalf or c) the amount paid by the agent to me after costs the agent incurs on my behalf less the costs I incur? I think it's option c, but would like to be sure. 3. Dividend Income This is below the threshold after which dividend tax is paid. I understand the income nonetheless counts towards my adjusted net income. Is that correct? 4. Interest Income This is below the threshold after which tax is paid on interest. I understand the income nonetheless counts towards my adjusted net income. Is that correct?