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Child benefit payback do you inc perks?

(8 Posts)
Notonaschoolnight Wed 26-Feb-14 19:26:08

ie the person earns 54k so is entitled to part of their CB payment but they have a company car with a cash value of 5k and healthcare of 1.5k from their P11d, do they inc those too therefore not entitled to a penny of their CB as over 60k in total?

ihategeorgeosborne Wed 26-Feb-14 21:21:01

I think you do have to include those perks when calculating how much CB to pay back. I think it's gross pay minus pension contributions and child care vouchers and then you add back in taxable benefits from P11D, which include company car, health care, etc. With the above example you give, I think you'd pay it all back in that situation, unless you had child care and pension contributions to deduct.

vj32 Wed 26-Feb-14 22:30:50

Yes agree with above. Presumably with a salary that high you are making quite high contributions into a pension though so that can be deducted?

Notonaschoolnight Wed 26-Feb-14 22:33:07

That would make sense honestly I've never known such a badly explained system in my life

Splatt34 Thu 27-Feb-14 07:44:26

As far as I understand it is if your TAXABLE income is >�50k. But I work for the NHS so no perks so not 100% certain.

riksti Thu 27-Feb-14 09:54:06

Yes, it's taxable income, meaning salary plus taxable benefits plus bank interest plus dividends plus any other taxable income you may have. From that you can deduct your (not employer's) gross pension contributions and gift aid payments. If this exceeds £50k for the highest earner then some/all of the child benefit will need to be paid back by the highest earner.

baffledmum Sat 01-Mar-14 22:37:53

Are the pension contributions made through salary exchange / salary sacrifice? If so, all contributions made this way count as employer contributions and they may reduced their taxable income. Ditto the company car, is this a salary exchange scheme as they can then discount the value of that. TBH the individual should contact their payroll manager and ask them what their taxable income for the year is. That is the simplest way of dealing with it.

CogitoErgoSometimes Sun 02-Mar-14 07:42:53

When you fill out the SA tax return you'll find that you have to include all income, whether in the form of cars, health insurance, etc or cash. Pension contributions and charitable donations are also included. I use some software called Taxcalc to file online. Makes it very straightforward

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