Adjusted net income to retain tax free childcare

Mister_Man

Hi there, can someone please advise on my calculation below? I'm in the fortunate position of wishing to get my adjusted net income below £100k to retain my tax free childcare.
I plan to make a one off lump sum contribution to my employers pension scheme to achieve this

2021/2022 tax year 

Salary £81,950
Bonus £35,000 (£5,000 sent straight to pension using bonus waiver)
Taxable benefits £2000
5% of salary employee contributions to pension scheme, paid in before ta £4098. Not employer, i choose to add 5% to their 10%

Adjusted net income calculation 

Total income = £81.950 salary + £30,000 (minus £5k bonus waiver) + £2,000 benefits
- £4098 employee contributions
= adjusted net income of £109,852

If I contributed £10,000 of post tax income, I would get my net adjusted income below £100k
£10,000 x 1.66 (grossed up for 40% tax payer is approx. £16,600

so £109,852 - £16,600 = adjusted net income of £93,252

My employer pension does not add relief at source for voluntary contributions, so I would need to reclaim the 40% tax relief via self assessment.
This relief is either returned via a rebate and or added to my tax code?

Thanks in advance. Trying to resolve this today. 

Mister_Man

Anybody… no…dust 

Dazed_and_C0nfused

If I contributed £10,000 of post tax income, I would get my net adjusted income below £100k

£10,000 x 1.66 (grossed up for 40% tax payer is approx. £16,600 so £109,852 - £16,600 = adjusted net income of £93,252

My employer pension does not add relief at source for voluntary contributions, so I would need to reclaim the 40% tax relief via self assessment.

This relief is either returned via a rebate and or added to my tax code?  

It may just be terminology but I think you're getting a bit mixed up with some things.

If you pay over £10k there are only possible outcomes pension wise, you have contributed £10k or you have contributed £12.5k (gross).

Employers don't usually add tax relief, it's the pension company that does that, courtesy of HMRC.

If you contribute to a "relief at source" scheme basic rate tax relief is added so your £10k becomes £12,500.

Also, if you contribute in 2021:22 you can only ever get tax relief for 2021:22, you would never receive any extra relief due via the tax code of a different tax year.

Gross contributions with no tax relief are relatively unusual, typically used by public sector schemes.  Are you certain that this isn't going to be a relief at source contribution?