Net adjusted income tax calc for child benefit

Elmroad82

Hi all,

I wonder if anyone can help me work out adjusted net income for Tax free childcare. I've been told various things ie it does/doesn't include pension... it does/does include personal allowances 

The tax free childcare threshold is 100k. So if the following is in place what's my net adjusted income please?

- Salary gross: 120k

- Pension (this is but I pay by my company as part of the company pension scheme): 30k
- take home pay 65k

- Annual dividend income: 3.5k

- Interest from savings 1.6k

- CGT in shares I've sold 6.5k

Many thanks 

Dazed_and_C0nfused

Elmroad82 said:

Hi all,

I wonder if anyone can help me work out adjusted net income for Tax free childcare. I've been told various things ie it does/doesn't include pension... it does/does include personal allowances 

The tax free childcare threshold is 100k. So if the following is in place what's my net adjusted income please?

- Salary gross: 120k

- Pension (this is but I pay by my company as part of the company pension scheme): 30k
- take home pay 65k

- Annual dividend income: 3.5k

- Interest from savings 1.6k

- CGT in shares I've sold 6.5k

Many thanks 

You need to be more specific about the pension contributions.

What method was used to make these?  The three usual methods are net pay, relief at source (RAS) and salary sacrifice.  If they were relief at source contributions is the £30k the net contribution or the gross amount with the basic rate relief added?

If they were net pay or salary sacrifice (which are actually employer contributions) then your P60 will show £90k not £120k.

Until you know the answer to that you cannot calculate your adjusted net income.

Are both the interest and dividends all taxable i.e. you haven't included tax free interest or dividends from ISA's?

Elmroad82

Thanks… here are my responses for more clarity…
- Pension- The amount (30k) is 2.5k
per month as shown as a -2.5k on my pay slip under my gross salary before tax and I get the mandatory contribution from company. 
- Savings and dividends are outside of ISAs

Dazed_and_C0nfused

Elmroad82 said:

Thanks… here are my responses for more clarity…
- Pension- The amount (24k) is 2k per month as shown as a -2k on my pay slip under my gross salary before tax and I get the mandatory contribution from company. 
- Savings and dividends are outside of ISAs

Where does £30k come into things then 🤔.

That sounds like a net pay scheme. 

Elmroad82

Dazed_and_C0nfused said:

Elmroad82 said:

Thanks… here are my responses for more clarity…
- Pension- The amount (24k) is 2k per month as shown as a -2k on my pay slip under my gross salary before tax and I get the mandatory contribution from company. 
- Savings and dividends are outside of ISAs

Where does £30k come into things then 🤔.

That sounds like a net pay scheme. 

I meant 30k not 24k in my previous post. It’s been edited and corrected. Thanks. 

So if it’s a net pay scheme, what would my Net adjusted pay be please?