This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

30 free childcare and tax return

Eli
Posts:4
Joined:Mon Apr 04, 2022 11:41 am
30 free childcare and tax return

Postby Eli » Fri Apr 29, 2022 12:53 pm

Hello, I am in a conversation with HMRC regarding my eligibility (or not) for 30 hours free childcare. I am PAYE but I do my tax return because of my income is a bit above 100k. With some expenses that my accountant helps me detract and with some payments I have been doing in my SIPP, my income gets below 100K which is the threshold to be eligible for the 30h free childcare.

HMRC has stopped my 30h free childcare, since they have only seen so far the income submitted by my employer which is above 100k. I thought I would simply fill my tax return early so I could show the adjusted income below the threshold. However..my employer is not producing the P60 until May and P11 form until the summer, so I won't be able to fill my tax return until then.

So...am I just going to miss out on the free hours childcare? what happens if HMRC states I am not eligible now, but then I end up being able to demonstrate I am eligible later in the year? I will call HMRC to discuss but advice is welcome! Thanks!

bd6759
Posts:4256
Joined:Sat Feb 01, 2014 3:26 pm

Re: 30 free childcare and tax return

Postby bd6759 » Fri Apr 29, 2022 2:07 pm

The income that matters is your adjusted net income. This is the amount after deductions such as expenses and pension contributions.

https://www.gov.uk/guidance/adjusted-net-income

Your conversation with HMRC should simply be to confirm that your ANI is below £100k. Refer them to your previous return, which will show this, and say that the same will apply.


Return to “Income Tax”