Skip to main content

This is a new service – your feedback will help us to improve it.

  • Adjusted net income for tax free childcare eligibility

    Hello, Could you please tell me whether my interpretation of my adjusted net income is correct for entitlement to tax free childcare (below £100,000 threshold)? My total income is £118,685. My employer (NHS) takes off £14,345 pension contributions before tax I have £2130 employment expenses (trade union, professional subscriptions, uniform and equipment) I am making £2,000 charity payment (grossed up £2500) I believe this gives me an adjusted net income of £99,710 (118,685 - 14,345 - 2130 - 2500) a) Is the above correct? b) Should my NHS pension contributions be grossed up to x1.25 of the amount (£17,930) since it was taken directly by my employer before tax? Thank you