Nursery tax account question

[EssexMamisoa]

Hi all. I have a question on setting up the nursery tax account.

i understand to be eligible DH needs to earn under £100k as his adjusted income. Adjusted income is basically his salary less gros pension contributions for us. DH is in the band where he could go over an adjusted income of £100k depending on his bonus. We really don’t want to. We could up his monthly pension contributions on the basis that he may go over (if we estimated a bonus), but ideally we don’t want to pay extra into our pension at this stage if we don’t have to. Basically we want a bit of extra cash now too!!

If we kept his pensions lower, but if his bonus then tipped up over the threshold, can he make a one off direct pension contribution as a lump sum and this still be deducted when calculating his annual adjusted income? Or do we need to commit to the monthly percentage pension contribution via his work scheme?

We’ve never made a one off lump sum either so no idea how we actually do that.

I don’t really know but I think charitable donations can be deducted if that helps.

Atleast I know people who manage to stay just under the 50k cap for child benefit on the basis of charitable donations.

At my company we can put part or all of our bonus into pension for this reason, so yes it’s possible but check your company policy.

Ah yes we can do that with our bonus too. That makes sense!!!