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  • Adjusted Net Income for Tax Free Childcare / Free Hours

    The information online is a bit inconsistent on this topic so wanted to raise it here, this is in relation to Tax Free Childcare and Free Childcare Hours. Example figures: - PAYE Salary: £135,000 - Taxable Benefits - Nill - Salary Sacrifice Pension - 7% Employee 7% Employer (9,450 + 9,450 = 18,900) Now with these figures would the Adjusted Net income, for the sake of TFC / Hours be 135,000 - 9,450 (125,550) and result in being not eligible to reach the threshold if figures were changed to the below would this work: Example figures 2: - PAYE Salary: £135,000 - Taxable Benefits - Nill - Salary Sacrifice Pension - 26% Employee 7% Employer (35,100 + 9,450 = 44,550) Adjusted Net = 99,900