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HMRC Mandatory review - tax free Childcare

34 replies

LeiLeiLeiLei · 12/04/2023 09:19

Anyone had experience of HMRC mandatory reviews regardless of topic eg child benefit / tax free childcare etc?

Just went to 102k for this tax year and instantly said I was not eligible due to income when I reapplied. I paid 4k private pension (so 5k grossed up) in March to get me under the 100k adjusted income.

However there seemed to be no way of informing them in advance. I had to send off a mandatory appeal on this. Anyone been in similar circumstances? How long do they take to assess and will they agree with my reasoning?

Thanks

OP posts:
PickledPurplePickle · 14/04/2023 19:49

LeiLeiLeiLei · 13/04/2023 23:34

@MudandParsnips I would say have a look at your March payslip (or 1st April) which ever is the closest to the tax year end and see what your gross income to tax is? If you have salary sacrificed to pay into your work place pension then this will be excluded from your gross salary / taxable income but it should be obvious on the pay slip. If you are still over 100k (due to the shares or otherwise) then you can pay additional sums (AVC) in work or private pension to take you back under 100k again. However , there might be some timing delay as HMRC wont know that you did an AVC so your income will still be over 100k . This is what happened to me i made AVC to private pension to take below 100k but HMRC dont know this so still see me as over 100k. Wish they allowed me to explain rather than a straight "you are no longer eligible"....

You need to file a self assessment tax return

LeiLeiLeiLei · 21/04/2023 10:18

Just an update - i got a email message on childcare account to say approved yesterday. Took roughly around ten days for decision on my mandatory review.

Now up and running again though i expect anyone who triggers the £100k limit as you approach tax year end they will just remove you from the scheme.

OP posts:
Aceofspadez · 09/09/2023 11:24

Hello everyone, my child is turning 3 in September and is starting nursery in January 2024. We want to apply for 30hours free child care. I work full time and my partner is due to Start working 16 hours a week st the minimum wage in 2 weeks time. Would we be eligible for 30hours free childcare ? She wouldn't get a full payslip probably for a month or 2 so wondering if that's going to be an issue. Many thanks all

Teapleasemilknosugar · 09/09/2023 12:35

Aceofspadez · 09/09/2023 11:24

Hello everyone, my child is turning 3 in September and is starting nursery in January 2024. We want to apply for 30hours free child care. I work full time and my partner is due to Start working 16 hours a week st the minimum wage in 2 weeks time. Would we be eligible for 30hours free childcare ? She wouldn't get a full payslip probably for a month or 2 so wondering if that's going to be an issue. Many thanks all

https://www.tax.service.gov.uk/childcare-calc/

What you’ll need - Childcare calculator - GOV.UK

https://www.tax.service.gov.uk/childcare-calc

beachdays27 · 09/09/2023 21:41

Aceofspadez · 09/09/2023 11:24

Hello everyone, my child is turning 3 in September and is starting nursery in January 2024. We want to apply for 30hours free child care. I work full time and my partner is due to Start working 16 hours a week st the minimum wage in 2 weeks time. Would we be eligible for 30hours free childcare ? She wouldn't get a full payslip probably for a month or 2 so wondering if that's going to be an issue. Many thanks all

Yeah you should be fine - apply in 2 weeks when your partner has started work - if there's any issues they can usually be sorted out via a phone call

Marmoo27 · 15/10/2023 19:55

Did you ever receive compensation for missed topups? How did you request them back please?

Marmoo27 · 15/10/2023 19:59

How did you claim the missed topups please?

StationeryNerd · 16/01/2025 13:46

LeiLeiLeiLei · 12/04/2023 09:19

Anyone had experience of HMRC mandatory reviews regardless of topic eg child benefit / tax free childcare etc?

Just went to 102k for this tax year and instantly said I was not eligible due to income when I reapplied. I paid 4k private pension (so 5k grossed up) in March to get me under the 100k adjusted income.

However there seemed to be no way of informing them in advance. I had to send off a mandatory appeal on this. Anyone been in similar circumstances? How long do they take to assess and will they agree with my reasoning?

Thanks

Hi OP, I've also been kicked out of the Tax-free topup for same reason, and about to enter mandatory review. Do you have any followup experience to share? We think it's a mistake on their part, but it's impossible to get through on phone. Sorry, I know it was ages ago

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