Free childcare hours - going over £100k

Fishandchips80

Hi there - could anybody please help me understand, if income is below £100k thus receiving free childcare hours - if I decided to purchase / sell some company shares as a one-off exercise, this would be considered income and means total income goes above £100k for that tax year: would you just stop claiming the free hours from that point, or would you have to repay the value of the free hours received during the tax year so far? Thanks 

Yamor

Unless there is something more 'exotic' going on here, the sale of shares is subject to CGT, and doesn't affect your 'adjusted net income' for free childcare purposes, which is based on your income only.

If your 'adjusted net income' is indeed going to be over £100k, then it does not affect the past, and not even the present. You just can't make another declaration of eligibility during the current tax year.

You can continue using the free hours until HMRC end it. Generally, this will be until the end of the term in which your current eligibility code expires, or the next term, depending on the exact date it expires.