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Posted Wed, 29 Nov 2023 18:57:14 GMT by
Can I subtract my state pension in Child Benefit tax calculator from my gross salary??? My employer every week deducts £35 from my wages plus add another £35 before deduct NI and Tax. Every week they pay into my state pension scheme £70. I'm a PAYE employee and i don't pay into any other private pension scheme. During the whole year, I could deduct: 52 weeks x £70/week= £3640. Because I'm currently in a higher tax bracket: £53328 (my salary) - £3640 (my state pension)= £49688 so in this case i would not to have to pay High Income Child Benefit Charge. Is it correct or not?
Posted Fri, 08 Dec 2023 08:14:27 GMT by HMRC Admin 25 Response
Hi charlie93007,
Sorry do you mean that you pay into a company pension as the State Pension is based on your National Insurance contribtions.
If a company pension and deducted from your salary before the tax is calculated then you would not be able to deduct for the adjusted net income.
If the contribtions to the pension are from your net pay then yes you can deduct for the adjusted net income. 
Thank you. 

 

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