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A question on child benefit and high income

4 replies

Lovestonap · 10/09/2018 17:56

Hi, Is anyone around here good with tax etc? I'm just trying to understand. My DH is about to have a payrise which will take his salary from 48.5 k to 51k. By my calculations that will probably leave us a bit worse off as he will have to pay tax, pension, NI etc and it will mean we will stop receiving child benefit.
However, am I right in thinking that if your pre tax deductions (pension and childcare vouchers) bring the taxable portion of your pay down to below £50k then this is ok?

I find this all a bit confusing tbh but don't want to get on the wrong side of HMRC!

Thank you to anyone who can explain things to be in idiot prof language!

OP posts:
SleepyMcEdie · 10/09/2018 17:57

Yes you can deduct pension and childcare vouchers first so you should still come in under £50k. My DH had the same issue recently.

spinn · 10/09/2018 17:59

From 50-60k the amount you lose is on a sliding scale so it wouldn't be a huge amount to lose.
It also is paid back at tax return the following January so it could potentially be 2 years before you need to repay anything (assuming. 18-19 is still below and then 19-20 would be repaid in January 2021)

As pp said, pension contributions are not included in this

MingaTurtle · 10/09/2018 18:08

Over £50k doesn’t lose the whole of CB - it’s a sliding scale to £60k. But you do have to complete a tax return and pay the bit you aren’t entitled to back.

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Lovestonap · 10/09/2018 18:09

Thank you very much!

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