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Advice on 30 hours care AND Tax Free savings ....

1 reply

GavinDaddy1986 · 03/03/2019 09:24

Hi community, apologies for the "newbie" question - but just seeking some friendly forum advice before I speak to my tax man on best way to proceed.

So myself and my wife both qualified for 30 hrs child care AND made the maximum contribution to Tax Free Child savings in FY18/19. It just so happened that we were both individually near the threshold to be legible for both of these schemes, so I ensured mine and my wifes employers made an outweighed contribution to our pension schemes at PAYE source (whilst also increasing all the usual unpaid holiday, claiming on charity relief concessions and national parks wherever we could etc) that subsequently reduces our incomes to beneath the qualifying thresholds set.

My question is - assuming I'll have a the standard increase this year and likely to propel my (and wifeys) pension contributions even further - WHAT is the process for REPAYING any of the benefits midway through the 2019/2020 tax year - should we exceed over again? Does the HMRC dept evaluate this come the end of the FY - I assume this must have occurred to some of the members, so just curious on the process with the HMRC dept that evaluates this?

Unexpected bonuses and commission make this all the harder to predict in advance...

Of course, this isn't likely to be until the Feb/March of 2020, but just getting some friendly advice in advance of this potential headache if I plan to over-contribute pension SIPP etc to stay eligible.

Kind thanks, Gav.

OP posts:
Orangeteddy · 04/03/2019 23:50

I’m not actually sure anyone knows yet! Tax free childcare and 30 free hours were only introduced in the 17/18 tax year so tax returns were only just completed for this in the last few weeks. It’s not clear what HMRC will do if anyone has claimed and then earned either over or under the requirement. I assume the 15 free hours above the universal 15 would have a set value which they would try to bill for or alter the next year’s tax code but I’ve not heard of anyone being affected yet. Same with the tax free childcare, they’d know the value of the top ups and could try to claim these back or adjust tax codes accordingly.

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