Tax free childcare question with regards to income… can anyone help?

[Useeb]

I earn 90k and with a bonus this is more like 108k. But this is then taxed. Does that mean that in reality you have to be earning a lot over 100k to not get the 30 free hours, as it’s 100k net which is the cut off, not gross? Thanks

From what I understand, you can't get 30 free hours if your net adjusted income is about £100k. Net adjusted income is basically your total taxable income minus payment into pension schemes. If you earn a little over £100k you can pay extra into your pension so they can get the 30 hours.

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

HMRC will look at the £108k and deem you no longer eligible. As PP says, put £9k into your pension, and then you'll be eligible once again for TFC.

It’s not net - it’s adjusted - at its most basic gross less pension.

if you pay more than £8k into your pension for the year then you’ll be fine.