Calculating Net Adjusted Income for Child Benefit High Income Tax Charge

Hi Matt Hill,
Please refer to:
Personal Allowances: adjusted net income
Thank you. 

If I have calculated my net adjusted income to below the £50k threshold do I still have to fill in a self assessment form. Will HMRC be automatically aware of my pension contributions or do I need to tell them?

Hi Lesley Cooke,
You would need to advise HMRC to review if the Self Assessment needed.
You can contact HMRC at Self Assessment: general enquiries
Thank you.

Hi my husband earned 53,386 (PAYE) last year and his pension contribution (taken after tax) were 3303 making his adjusted income 50,083 - the calculated on the hmrc website says we don’t need to pay any charges - do I still need to do a self assessment? Many thanks

Hi LisaH,
You would still need to complete a tax return, due to your husband's level of income before the adjustments.
Thank you.

If my salary is £55k and my pension contributions are £6k deducted before tax making taxable income £49k do I need to do a tax return? A simple yes or no would be helpful. Thanks.

Hi,

If your salary is £55000 before your pension contributions of £6000 are deducted before tax, making your taxable income £49000, then a tax return would be necessary.

Thank you.

Hello I am currently earning £125k a year.  I am putting 13% away into a pension via my employer - a company pension plan by aviva (10% my contributions plus 3% my employers contributions.) It is a salary sacrifice arrangement ie not the net relief at source arrangement.  I am then putting £750 away per month into a private pension.  My understanding is this is bringing my net adjusted incoming under £100k. However in speaking to the government childcare scheme, they mentioned that workplace pensions can’t be used to bring a salary down and only private pensions - I now can’t find anything about this online. I have called numerous times and cannot get through to the right people at a time the lines aren’t too busy and they don’t answer. Can you help clarify here please? Thank you! 

Hi CCough37,
If the pension contributions are taken from your gross wage before the tax is calculated then relief would already be given and your salary reduced.
If salary sacrifice then again will already have been taken from your gross wage.
If you make contributions from your net wage then this would reduce your adjusted net income:
Personal Allowances: adjusted net income
Thank you. 

Hi HMRC Admin, I am interested to know whether SEIS and EIS relief have an impact on "adjusted net income". The link you've provided says that certain reliefs are deducted from the total taxable income as part of the calculation, but it doesn't list SEIS and EIS specifically. Example. Total taxable income 105,000 SEIS investment 20,000 (50% tax relief = 10,000) Would this result in an adjusted net income of 95,000 or 105,000? Thank you. <<< What adjusted net income is Adjusted net income is total taxable income before any Personal Allowances and less certain tax reliefs, for example: trading losses donations made to charities through Gift Aid - take off the ‘grossed-up’ amount pension contributions paid gross (before tax relief) pension contributions where your pension provider has already given you tax relief at the basic rate - take off the ‘grossed-up’ amount >>>

Hi,
Payments to these investment schemes are not taken into account when working out your adjusted net income.
Thank you.

Hi, I receive private the healthcare as an employment benefit. However, this benefit includes cover for my children as well as myself. What proportion of this benefit do I include on my tax assessment? Thanks

Hello just enquiring about the child benefit high earners tax, does this apply to single parent families as well?

Hi,

It does - if a single parent earns over £60,000 in 24/25, they will have to repay some of their Child Benefit, depending on how much over the threshold they earned. You can read more here -

Understand your Self Assessment tax bill

and contact our Child Benefit team here -

Child Benefit: general enquiries

Thank you.
 

I receive private healthcare as an employment benefit. However, this benefit includes cover for my children as well as myself. What proportion of this benefit do I include on my tax assessment?

Hi,
You would include the entry from your P11d provided by your employer. 
Thank you.

Hi Jsvii,
You would declare the figure you employer has declared to us as being taxable. If you do not know this figure, please either contact your employer, or contact our Self Assesment team.
Self Assessment: general enquiries
Thank you.

Hi Admin I have received a latter re child benefit tax, On latter its mentioned as adjusted net income to be less than 50k. I am PAYE with gross income 60k, which makes my net income 44081.64 But if i put my gross income to child benefit calculator, with deductions of pension contributions than it shows i need to pay tax. Can you please guide to a right way Thanks

Hi ,
 

To advise you correctly here, we would need to review your adjusted net income calculation. To allow us to do this, contact us by webchat or phone via : Income Tax: general enquiries  . Thank you .

Dear HMRC Admin, I am trying to calculate my adjusted net income (using https://www.gov.uk/guidance/adjusted-net-income) and I had a question regarding how to do so based on the figures on my payslip. Regarding 'Step 1 — work out your net income’ , I wanted to double check what I should put as my taxable income. There are different figures in the This Period Summary section: PENSIONABLE PAY, TAXABLE PAY, NON-TAXABLE PAY, TOTAL PAYMENTS. Am I correct to think that I should use the TAXABLE PAY figure? Regarding 'Step 3 — take off pension contributions', am I correct that I should use the NHS Pension figure in the DEDUCTIONS and multiply it by 1.25? Thanks so much for the clarification.