Adjustable Net Income just over £100k

DaveP856

Morning - newbie on here so please be gentle.

My Net Income at the end of the 24/25 tax year is £255 over £100k - which means I have been contacted by the HMRC regarding my childcare allowance for my 2 year olds 15 free hours at nursery.

The phone call with HMRC seemed to suggest they were ok with me as I said I was looking to setup a private pension scheme to supplement my workplace one to bring the NRI down. 

Was after any advice on what methods I can use to bring this value down to under £100k.. and would I need to retrospectively fill out a tax return for 24/25?
Dave

Bookworm225

do you have an existing pension scheme where you have not contributed to it up to the max threshold in 24/25?

if not, then you cannot make a payment now and claim that payment is retrospective for a closed tax year. Nor can you open a new scheme now and claim that it was opened last year 

In the UK, you cannot backdate actual pension contributions, but there is a system that allows you to carry forward unused annual allowances from the previous three tax years. 
Can You Backdate Pension Contributions? – FH Manning Financial Services Ltd in Horncastle

eskbanker

You might wish to consider gift aid donations, which can be carried back under certain circumstances:

https://www.litrg.org.uk/tax-nic/income-tax/gift-aid#12

Nomunnofun1

DaveP856 said:

Morning - newbie on here so please be gentle.

My Net Income at the end of the 24/25 tax year is £255 over £100k - which means I have been contacted by the HMRC regarding my childcare allowance for my 2 year olds 15 free hours at nursery.

The phone call with HMRC seemed to suggest they were ok with me as I said I was looking to setup a private pension scheme to supplement my workplace one to bring the NRI down. 

Was after any advice on what methods I can use to bring this value down to under £100k.. and would I need to retrospectively fill out a tax return for 24/25?
Dave

For that amount over £100k you really need to consider a gift aid donation of at least £205. You can carry this back so long as it is before filing your tax return - this is strictly applied!

https://community.hmrc.gov.uk/customerforums/sa/e787e1f9-4d1f-ef11-a81c-002248c5d744

DaveP856

Thanks everyone.. I don’t have the option to pay more into my employers pension last year.. if I set up a new pension scheme for this year and made a lump sum payment nearer to the year end deadline that would mean I am ok
for 25/26 I assume (if I was £1,000 over the £100,000 I assume if I paid £1,000 in I am covered?)

as for gift aid last FY.. I can do this.. would I need to pay £205 or is £205 a % of a bigger number I would need to pay? 

Thanks 

Nomunnofun1

DaveP856 said:

Thanks everyone.. I don’t have the option to pay more into my employers pension last year.. if I set up a new pension scheme for this year and made a lump sum payment nearer to the year end deadline that would mean I am ok
for 25/26 I assume (if I was £1,000 over the £100,000 I assume if I paid £1,000 in I am covered?)

as for gift aid last FY.. I can do this.. would I need to pay £205 or is £205 a % of a bigger number I would need to pay? 

Thanks 

£205 payment by you would be grossed up to £256. 

Multiply your payment by 1.25. 

Note that I said ‘at least’. Give yourself some leeway!