Remaining under the £100k threshold for child benefits

shaquille_oatmeal

Hi all,

First time poster, long time reader.

I'm starting a new job in April and my income will be going up. I want to understand how that will affect tax-free childcare as well as the 15 free hours and whether there's anything I can do to remain eligible.

My new role offers £108k base salary, with up to 30% annual bonus (0-15% is more likely though), as well as around £5k reimbursement for expenses.

I believe that pension contributions at my new employer are done through salary sacrifice, and I'm aiming to contribute at least £1k / month.

Would it be possible for me to contribute a sufficient amount to my pension to bring me under the £100k 'adjusted net income' eligibility limit for tax-free childcare and the 15 free hours?

If that is possible in theory then I suppose I'd probably have to be a bit defensive with my contributions as the bonus isn't knowable until the end of the year and that could end up putting me over. In that situation (unexpected income puts you over the £100k limit) I imagine you'd have to repay any claimed benefits? Is that done through self-assessment tax return?

I've read through the Gov.uk page on Adjusted Net Income a few times but can't quite get my head around it. Any help on the matter would be greatly appreciated, thank you.

Saint84

Hi yes, you can use pension contribution to bring down your adjusted net earnings (into a private pension)