Tax Free / Free Childcare - Net Adjusted Salary Exceeds £100k on Tax Assessment

Complex

Hi all, 

I am currently entitled to tax free/ free childcare hours due to ensuring my net adjusted income falls below the £100k threshold, in the main through salary sacrificing pension contributions. 

However, I have recently received my tax summary for the financial year 24/25. It suggests my taxable income was £100,200. £200 over the eligibility threshold. It is simply because I failed to consider interest and also my car benefit value was slightly incorrect. 

So my question is whether I am now at risk of having to pay back the tax free element of child care for the year 24/25? 

In terms of the current year, I continue to state I am eligible and again intend to stay below the £100k net adjusted threshold. 

Any help would be greatly appreciated. 

Thanks

Dazed_and_C0nfused

Taxable income and adjusted net income are two different things.

It's not uncommon to have taxable income above £100,000 but adjusted net income of £100,000 or less.

Taxable interest would be better part of both you're taxable income and your adjusted net income.  Same for company benefits.

Did you make any Gift Aid donations or relief at source pension contributions in 2024/25 which might reduce your adjusted net income?
NB.  They do NOT reduce your taxable income.

Complex

Dazed_and_C0nfused said:

Taxable income and adjusted net income are two different things.

It's not uncommon to have taxable income above £100,000 but adjusted net income of £100,000 or less.

Taxable interest would be better part of both you're taxable income and your adjusted net income.  Same for company benefits.

Did you make any Gift Aid donations or relief at source pension contributions in 2024/25 which might reduce your adjusted net income?
NB.  They do NOT reduce your taxable income.

Apologies - you're correct. However in my circumstance I have nothing that would reduce my net adjusted income not already factored i.e. pension contributions. I will have made gift aid donations but not sufficient in value to cover the £200 that is in excess to the £100k. 

Complex

I'm questioning whether it is really a big issue at all - I'd rather just leave it if I can - as opposed to now trying to submit a self assessment after the fact (and ahead of January). The way in which free childcare is worded is that you have to select a box around expected net adjusted income.. not absolute. So in the event that the net adjusted income goes slightly above (against my expectations), I have still complied with the eligibility assessment to receive the tax free element? 

dales1

If you haven't done a tax return for 2024-25 yet, then there is still time to make a charitable donation and carry it back to 2024-25. https://www.litrg.org.uk/tax-nic/income-tax/gift-aid#12