Taking net adjusted income under £100k for childcare 30 hours

tobycgraham

Hello, my 30 hours childcare has just been stopped due to me exceeding £100k net adjusted income. I have tried to avoid the 60% trap by making pension contributions of £8136 this year thus taking my earnings below £100k. Is this correct ? Would this also mean I am eligible for 30 hours free childcare ? Any help greatly apprecited. Below is my tax slip:

[Deleted User]

We would need a breakdown of your tax code which is negative to the tune of 4789. How much of this relates to benefits in kind, PAYE underpayments, pension relief etc?

tobycgraham

[Deleted User] said:

We would need a breakdown of your tax code which is negative to the tune of 4789. How much of this relates to benefits in kind, PAYE underpayments, pension relief etc?

thanks for replying. I'm not 100% sure to be honest. My tax code changed due to maternity leave & HMRC deducting too much tax. 

K_S

@tobycgraham In principle, if your gross income (income from employment incl benefits, other income outside employment, etc) is 107.8k and you make 8.1k of gross pension payments from that income, your ANI *should* be less than 100k.

Having said that, from your payslip it looks like your pension payments are salary-sacrifice (as the gross pay for the month has been calculated after deducting the pension contribution), in which case the 107.8k gross earning for the year shown on the payslip is after deducting your pension contributions. Hopefully I'm making sense! 

tobycgraham

K_S said:

@tobycgraham In principle, if your gross income (income from employment incl benefits, other income outside employment, etc) is 107.8k and you make 8.1k of gross pension payments from that income, your ANI *should* be less than 100k.

Having said that, from your payslip it looks like your pension payments are salary-sacrifice (as the gross pay for the month has been calculated after deducting the pension contribution), in which case the 107.8k gross earning for the year shown on the payslip is after deducting your pension contributions. Hopefully I'm making sense! 

Thanks. So I would need to double my pension payment to take it below £100k.

[Deleted User]

tobycgraham said:

K_S said:

@tobycgraham In principle, if your gross income (income from employment incl benefits, other income outside employment, etc) is 107.8k and you make 8.1k of gross pension payments from that income, your ANI *should* be less than 100k.

Having said that, from your payslip it looks like your pension payments are salary-sacrifice (as the gross pay for the month has been calculated after deducting the pension contribution), in which case the 107.8k gross earning for the year shown on the payslip is after deducting your pension contributions. Hopefully I'm making sense! 

Thanks. So I would need to double my pension payment to take it below £100k.

As I have said,you are on a minus code and it is possible that this is as a result of being in receipt of benefits in kind which use up your personal allowance whether or not your salary is £100k. The value of these benefits needs to be added to your salary to determine your income before you start looking at reducing your adjusted net income through additional pension contributions.