Child Benefit - Calcutating Charge.....

Hi Saman,

The PAYE system will be trying to deduct tax now so that when you complete the next Self Assessment you will have a lower amount to pay.

If you would prefer to pay direct to Self Assessment you will need to contact us to update this: 

Self Assessment: general enquiries

Thank you. 



 

Hi,

The High Income Child Benefit Charge (HICBC), is worked out on the income of the highest earner in the household.  

This could mean the highest earner in the household is not a parent of the child.  Have a look at High Income Child Benefit Charge.  

You should also look at the guidance for net adjusted income here Personal Allowances: adjusted net income to help you work out if you exceed the £50000.00 theshold for HICBC.

Thank you.

Can your reply to my questions please

Hi Claire,

If the pension contributions were deducted from your net pay, you would be below the £50,000 threshold and wouldn't need to complete a tax return.

Thank you.

I have recently had to complete the self assessment. I have one question though someone might be able to answer. My tax charge was £1535.60 However my tax code has dropped by £3215 under “Less Child Benefit Charge” Is this correct?

Hi Simon Winder,

You would pay 40% of the charge that is in your tax code.

Thank you.

I'm looking at the calculator tool. In 21/22 my partner earned over the 50k threshold, and has a workplace pension with employer contributing 3% and the employee 5%. When looking to deduct pension contributions under net pay arrangements, is it employee contribution only, or does it include the employer contribution? Thanks

Hi samantha borley
Only employee contributions are deductible .
Thankyou.

I have another question that I am hoping someone can help with. I have a workplace pension scheme where pension payments are taken before tax. I also pay extra directly to my pension provider after tax and out of my salary. I'm assuming the extra pension payments I make aren't included in my annual adjusted income as HMRC do not know about them a I make them directly myself? How do I notify HMRC of these extra pension payments so that therefore my AAI is below £50000? Does this just mean I need to complete a self assessment form each year? I'm assuming direct payments from me to my pension provider can still be deducted or is it only payments done via a workplace pension? Thank you

Help needed! I am completing a self assessment tax return for the second time to work out my child benefit charges and do not understand the amounts I am asked to repay, My adjusted net income for tax year 2022-3, meaning gross pay minus employer pension contributions is £56572.58. My tax deductions for the year are £8846. I have one child and claimed for 9 payments of 13 for the tax year, before ending my entitlement in December 2022. Total payments £784.80. I have input all of this information onto the self assessment form, just as I did last year. According to the child benefit higher charge calculator I would owe £344. The self assessment calculator states I am to pay £1723.80. What is going on? It is distressing that I cannot talk to anyone from HMRC about this. £1723 is considerably larger a sum than £344 and very worrying indeed. Please can someone help? Thanks

Hi Nick,

You can notify us by telephone or in writing regarding the payments.
If the direct after tax payments take you below £50,000 you do not need to complete Self-Assessment.
Tax on your private pension contributions

Thank you.

Morning, Another qstn re filing a tax return in order to pay the child benefit charge. I earn £56700, and have a workplace pension (taken before tax). The 'pay' figure on my P60 is that of my salary (£56700) and not salary minus pension contributions as previously stated on this thread. Can i go through my payslips for that year and deduct all pension contributions from my gross salary to arrive at my adjusted net income. Thanks

Hi markyB81,

You should confirm with payroll if the contributions are taken before or after tax.
If the contributions are not taken before you are taxed, you can deduct them.

Thank you.