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Posted Tue, 09 Apr 2024 08:24:44 GMT by Darran Girling
Hello, I am trying to calculate whether or not I need to pay the high income child benefit charge. My total income before tax, for the tax year 2023-24 is £56, 081.57. On the Gov website link - it states the following; 'What counts as income To work out if your income is over the threshold, you’ll need to work out your ‘adjusted net income’. Your adjusted net income is your total taxable income before any allowances and not including things like Gift Aid.' My pension contributions are taken after tax, and total £5592.66. As such, if I make this deduction from my total income before tax, the total is £50, 488.91. My main question is, my tax free personal allowance is £12, 570, so am I able to deduct my tax free personal allowance (£12, 570) from my adjusted net income (£50, 488.91), for the purpose of calculating whether or not I need to pay the high income child benefit charge?
Posted Thu, 18 Apr 2024 08:07:23 GMT by HMRC Admin 5

No the personal allowance is not deducted to calulate your adjusted net income. Guidance can be found at Personal Allowances: adjusted net income

Thank you

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