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  • Calculating Net Income and Adjusted Net Income of free childcare

    How is rental income from residential properties and associated relief for finance costs included in the Adjusted net income for childcare. Per the HMRC guidance ( when calculating Net Income it says 'some rental income' is included in this calculation - is this gross rental income less costs (excluding finance costs) as would be included in the tax calculation? Or is an adjustment made at this stage for Relief for Finance Costs, so reducing the Net Income. Eg Total Taxable income is £105,000 included net rental income, mortgage interest paid is £7,000 so the Net Income is £98,000?