TFC11100 | Adjusted net income: hypothetical adjusted net

Childcare Payments (Eligibility) Regulations 2015, regulation 15(2)

A resident of a prescribed state in paid employment in the UK must not expect their hypothetical adjusted net income to exceed £100,000 in the tax year in which the declaration of eligibility falls.

Childcare Payments (Eligibility) Regulations 2015, regulation 15(4)

Hypothetical adjusted net income is the amount that would be that individual’s adjusted net income if that individual’s income tax liability were calculated on the basis that the individual:

Childcare Payments (Eligibility) Regulations 2015, regulation 15(4)(a)

Was UK resident for the tax year concerned (and the year was not a split year), and;

Childcare Payments (Eligibility) Regulations 2015, regulation 15(4)(b)

Was domiciled in the UK for that tax year, and;

Childcare Payments (Eligibility) Regulations 2015, regulation 15(4)(c)

In that tax year, was not regarded as resident in a country outside the UK for the purposes of any double taxation arrangements, and;

Childcare Payments (Eligibility) Regulations 2015, regulation 15(4)(d)

For that tax year, had made a claim for any available relief under section 6 of the Taxation (International and Other Provisions) Act 2010 (as required by subsection (6) of that section).

Where an individual’s adjusted hypothetical net income for a tax year is not Sterling, it will be calculated by reference to the average exchange rate for the year ending on 31 March in the relevant year. Relevant year means the tax year in which the declaration of eligibility falls.