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  • Calculate adjusted net income for purpose of Tax Free Childcare

    I work for the NHS and I am planning to apply for tax free childcare but I am unsure if I am eligible. My gross pay is £112,658 and my pension contributions to the NHS pension scheme are of £14,351. I am unsure if NHS pension contributions can be taken from the gross salary to calculate adjusted net income for purpose of tax free childcare. I did not think so but the HMRC page on adjusted net income states "taxable income" and on my final payslip of the year "taxable pay" reads same as P60, i.e. £98,306. Am I above the eligibility limit or not? It is a bit confusing.