Adjusted Net income

Endeavour23

Apologies as this has been done to death I’m sure but here I am…another confused person trying to figure out if eligible for the free childcare hours so needing adjusted net income to be under £100k

For FY22/23 my details were as follows:
Taxable income before personal allowance : £99,585 this is my only income 
Gift aid: I have made some this year but have no proof so ignoring this for now 
Pension contribution: only contribution is to my work place pension which I understand has been included in the above taxable income amount. 

My FY23/24 amounts will be very skewed and lower as I was in maternity leave from June 23-April 24. 

Have I missed anything or am I literally just scrapping into the under £100k threshold by the skin of my teeth!!!? 

Dazed_and_C0nfused

Can you claim free childcare retrospectively?

Isn't the ANI for the current tax year more relevant?

Endeavour23

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

HappyHarry

Have you received any interest, any dividends or have received any benefits in kind from your employer such as company car or medical insurance?

Dazed_and_C0nfused

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

Endeavour23

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Inbetweeners

Endeavour23 said:

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Your post is confusing. On the one hand you say your pension contributions come off pre tax so that being the case your taxable pay should be after the pension contributions have been deducted, i.e. £101,984. Then you want to deduct the pension contributions from your taxable pay?

Can you post a redacted payslip so we can see what the actual position is.

As an aside, someone in your position should be paying a lot more than that towards your pension.

Endeavour23

Inbetweeners said:

Endeavour23 said:

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Your post is confusing. On the one hand you say your pension contributions come off pre tax so that being the case your taxable pay should be after the pension contributions have been deducted, i.e. £101,984. Then you want to deduct the pension contributions from your taxable pay?

Can you post a redacted payslip so we can see what the actual position is.

As an aside, someone in your position should be paying a lot more than that towards your pension.

I was just following the guidance from the HMRC as per the following I thought:

payments made gross to pension schemes - those that have been made without tax relief

So my pension contribution on my payslip is shown on the taxable gross side before deductions for tax are made.

Inbetweeners

Endeavour23 said:

Inbetweeners said:

Endeavour23 said:

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Your post is confusing. On the one hand you say your pension contributions come off pre tax so that being the case your taxable pay should be after the pension contributions have been deducted, i.e. £101,984. Then you want to deduct the pension contributions from your taxable pay?

Can you post a redacted payslip so we can see what the actual position is.

As an aside, someone in your position should be paying a lot more than that towards your pension.

I was just following the guidance from the HMRC as per the following I thought:

payments made gross to pension schemes - those that have been made without tax relief

So my pension contribution on my payslip is shown on the taxable gross side before deductions for tax are made.

But you have had tax relief. If your taxable pay is the difference between your gross pay and pensiin contributions then you cannot deduct them again.

chrisbur

Endeavour23 said:

Inbetweeners said:

Endeavour23 said:

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Your post is confusing. On the one hand you say your pension contributions come off pre tax so that being the case your taxable pay should be after the pension contributions have been deducted, i.e. £101,984. Then you want to deduct the pension contributions from your taxable pay?

Can you post a redacted payslip so we can see what the actual position is.

As an aside, someone in your position should be paying a lot more than that towards your pension.

I was just following the guidance from the HMRC as per the following I thought:

payments made gross to pension schemes - those that have been made without tax relief

So my pension contribution on my payslip is shown on the taxable gross side before deductions for tax are made.

If your payslip has just one gross figure then your pension is being taken from your net pay (relief at source) 
If your payslip has two gross figures one for gross and one ( a lower figure if just pension involved ) marked taxable gross then your pension is being taken before tax is calculated, ie the lower taxable gross figure is used (net pay arrangement) 
 

Endeavour23

chrisbur said:

Endeavour23 said:

Inbetweeners said:

Endeavour23 said:

Dazed_and_C0nfused said:

Endeavour23 said:

My current tax year amounts will be very similar to the 22/23 amounts. Not sure how is best to calculate current tax year when the year is still ‘live’ 

The exact same way you would for any other tax year.

You might just need to estimate some elements.

But if for example you have a bank account with £X in and you know the interest will be paid on say 31 March 2025 you should be able to work out a decent estimate of the interest

OK so I have gone through month by month and done the following:
Apr24- Aug 24- used actual payslips for taxable income
Sept 24- Mar 25 - estimated taxable income based on previous months (I have not included anything for a 'potential' pay rise in October as this is all unknown at present) but I have included a bonus amount which I know of.
Doing the above gives me a taxable income of £101,984.99

I have no other taxable incomes to include (no dividends, no rental income, no interest on savings)

I only have a pension where by my employer takes workplace pension contributions out of my pay before deducting Income Tax so the pension contributions are included in the above amount as show on payslip pre tax.

Gift Aid- I have made some but I have no records (will keep these going forward!)

Pension contributions
- My contributions made I estimate will total £4,752.12 for the year

Therefore on the above I estimate my ANI  to be £97,232.87

Have I missed anything or am I totally incorrect here!

Your post is confusing. On the one hand you say your pension contributions come off pre tax so that being the case your taxable pay should be after the pension contributions have been deducted, i.e. £101,984. Then you want to deduct the pension contributions from your taxable pay?

Can you post a redacted payslip so we can see what the actual position is.

As an aside, someone in your position should be paying a lot more than that towards your pension.

I was just following the guidance from the HMRC as per the following I thought:

payments made gross to pension schemes - those that have been made without tax relief

So my pension contribution on my payslip is shown on the taxable gross side before deductions for tax are made.

If your payslip has just one gross figure then your pension is being taken from your net pay (relief at source) 
If your payslip has two gross figures one for gross and one ( a lower figure if just pension involved ) marked taxable gross then your pension is being taken before tax is calculated, ie the lower taxable gross figure is used (net pay arrangement) 
 

On my payslip there is only one Pension amount shown which I believe is included in the taxable gross amount f my total payslip. If this is the case do I then deduct this or not as the HMRC guidance is very confusing IMO- as per the below it implies you would take off payments made gross to pension schemes.

From the Gov website:
Step 1 - work out your ‘net income’

Add up your taxable income

Include things like:

• money you earn from employment (including any benefits you get from your job)
• profits you make if you’re self-employed including from services you sell through websites or apps
• some state benefits
• most pensions (including the State Pension, company and personal pensions and retirement annuities )
• interest on savings and pensioners bonds
• dividends from company shares
• some rental income
• income from a trust

Take off any tax reliefs that apply like:

• payments made gross to pension schemes - those that have been made without tax relief
• trading losses, for example trade loss relief or property loss relief

This is your ‘net income’.