Eric66

I receive a bounty as an MOD reservist which is tax free, in accordance with government literature. Does this bounty reduce my “Adjusted net income” in the same way that allowable expenses or pension contributions do? I’m asking as I’d like to keep my salary below the threshold for tax free childcare. I’ll give a quick example below with arbitrary figures: Salary - £110,000 Bounty - £10,000 Private Pension Contribution - £15,000 = Adjusted Net Income - £95,000 I’d be interested to know if my understanding was correct. Also, would the correct place for the Bounty on my Self assessment be as an allowable expense, or is it better to reduce my P60 figure by the Bounty amount? Many Thanks.