Can workplace nursery deductions be factored into "adjusted net income" to drop below £100k?

[PoliteEnquiry]

Hello, dad here (M37). First time posting.

DD is going to be 3 years old in Jan 24, so we will be signing up for the 15 universal funded hours.

We'd also like to sign-up for the additional 15 hours of free childcare. However my adjusted net income slightly exceeds £100k (after accounting for pension deductions).

My employer does have a workplace nursery scheme though, which we have signed up to - if we factor this nursery scheme deduction in, then my adjusted net income in theory, would be below £100k.

My question is - can workplace nursery scheme deductions be factored into your adjusted net income calculation? My gut says "no", but the guidance is not exhaustive so I thought I'd see if anyone here has a similar situation?

Please kindly don't cast any aspersions that you think I'm being greedy, and that my salary is more than enough so I shouldn't try to look for more benefits - I am an immigrant, and have to financially support my family in my home country. We live a frugal lifestyle, and every pound counts. We all have our own backstories.

Ask your accountant - they'll give you accurate and non-judgemental advice.

If your workplace nursery scheme is a salary sacrifice system then yes, you can use this to bring your net income below 100k and claim the funded hours.

If it’s a benefit in kind then no. Things like health insurance can catch people out too.

you can put more into a sipp though to lower your pay below the level (assuming you haven’t maxed it out). But to be honest i would just get a professional to advise. It’s a tricky area and you might get stung by something else not mentioned here.

Yes I believe it is (although I'm struggling to find the exact words "salary sacrifice" in our HRs wording / description of the workplace nursery scheme).

In a nutshell, when I look at my payslip, I have "pension salary sacrifice" and "tax efficient childcare" as amounts that reduce my gross pay - This is separate from "normal deductions" such as N.I, Income tax etc.

Get a professional to advise, or just increase your pension contributions if you are slightly over the £100k.

If it shows as being deducted from your wage by your employer before they calculate your gross, taxable income then it'll count as being salary sacrificed I think. Could your HR department confirm for you?