Confusedbytheguidance
-
RE: Calculating adjusted net income for tax free childcare / 30 free hours
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator. -
RE: Calculating adjusted net income for tax free childcare / 30 free hours
Hi, I'm not sure if I should post on here or start an new thread but will try here first. My situation for the 2024/25 tax year is as follows (slightly simplified for ease of understanding): Gross income from employment £111,500 Interest income £1,500 P11D benefits (health insurance) £2,000 Total gross income £115,000 I need to have under £100,000 of adjusted net income in order to get my free childcare, so plan on making a contribution of £14,000, out of my net salary, into my SIPP. This will then be grossed up by my pension provider (14,000 x 1.25 = £17,500) The question I have is does this then reduce my net income for free childcare purposes to £97,500 (£115,000 - £17,500)? P.S. I have made the (prudent to my mind) assumption that P11D benefits are included in the net income calculation, if you could clarify this too that would be helpful. Thank you