Tax Free Childcare & Umbrella Company Income

[daz74]

Could any of you in your infinite wisdom help me please. I qualify for Tax Free Childcare as I currently earn under the £100k threshold. However I may soon taking on a new contract through an umbrella which may bring me over this limit set by HMRC. My query is this though - which figure do HMRC consider when assessing my income; is it before or after Employers NI, their margin and
Apprenticeship Levy is applied? Is it the gross amount before this applied or the amount paid to me after which I pay employee tax and NI? I think it’s the latter as it is this which is reported to HMRC via my payslips / umbrella provider, however I know HMRC also receives reports from my agency quarterly on how much they have sent to the umbrella for each worker. Pre employers NI, Levy etc I’m over £100k thereafter I’m under. I currently do not have a personal pension salary sacrifice in place. If needs be I can put one in place as my Umbrella will accommodate such an arrangement but I still need to know the amount each month to put aside to fulfil Tax free Childcare requirements.

Thanks

[eek]

It’s your PAYE income I.E. after Employer NI, apprenticeship levy, umbrella margin and salary sacrifice pension.

whatever You do watch things over the last month (I.e. the days you work before the last payment before April 5th) and take days off if you need to.

[Nava39]

Use salary sacrifice pension contribution to reduce your taxable income to less than 100k.

Not only you lose your Child Care allowance, you also start to lose your 12.5k initial tax free allowance after 100k. So a SIPp contribution is the best option