Child Benefit Tax Question

[Springb0ks]

I am fortunate enough to earn 54K per year. This year have received child benefit. My income minus pension is £46K below the threshold of 50,999K for a tax return bill. I have calculate how much child benefit tax I owe on the online calculate and it says zero. Do I still need to complete a tax return this year or not? PS. Well aware I've missed the end of Jan deadline. Having a bit of a panic!

Can't help with your question I'm afraid. But the deadline for submitting you return has been extended until Feb.
You still need to have paid what you owe by 31 Jan, but if you owe nothing and submit a return (if you need to) by end of Feb you won't get fined.

The CB threshold is £50k+ after pension contributions.
If the pension contributions have tax relief at source your P60 will show the lower figure. If they are after tax and the pension provider reclaims the tax then your P60 shows the higher amount and you deduct the grossed up contributions.
If this is under £50k you won't have a CB claw back and don't have to complete a tax return unless you have other untaxed income.

Hi, I’ve been wondering about CB. Whilst my basic salary is under 50k, due to covid and having to work a ridiculous amount of overtime in the NHS over the past year I think I will have earnt just over 50k by the end of tax year. Do they write to you to tell you? Do claim it back as a lump sum? Am I meant of done a Self assessment?
I really hope I don’t have to do as much over time in the next tax year as I’ve had to do this past year.

@Poppiesway1 - you are talking about what you are earning in the current tax year (ending 5 April 2021), which has a self-assessment deadline of 31 Jan 2022, so no panic yet. If you get your P60 later this year and you have have gone over £50,000 then it might be easiest to contact HMRC and they might be able to claw back the relevant proportion of CB by adjusting your tax code rather than you needing to do self-assessment. If you do end up being asked to do SA, if your only income is from employment, then completing the return is fairly straightforward from the information on your P60.

By the way, higher rate taxpayers, are you aware that if you made any charitable donations and signed that it qualified for Gift Aid, you can claim back the balance of the higher rate tax on your donation?

So, if you give £100 to a charity, the charity claim back a further £25 from HMRC (based on the basic rate of 20%) if you declare Gift Aid.
Then you (via self-assessment) can claim back from HMRC another £25 (based on the 20% difference between basic and higher rate).

@DadDadDad Sorry yes, tax year 2020-21.
The gift aid bit is interesting as The Scout group my dc are in claim gift aid from our “subs” so that would help them. I don’t recall the option of declaring tax rate on there though, so will raise it when it starts up again. Thankyou

[quote Poppiesway1]@DadDadDad Sorry yes, tax year 2020-21.
The gift aid bit is interesting as The Scout group my dc are in claim gift aid from our “subs” so that would help them. I don’t recall the option of declaring tax rate on there though, so will raise it when it starts up again. Thankyou[/quote]
You don't declare the tax rate, only that you are a tax payer.
It makes no difference to the organisation you have made the donation to, they claim the same back regardless.
But for you it raises your higher rate threshold, so you pay 20% tax instead of 40% on that proportion.
Gift aided donations are also deducted from income in the same way as pension contributions to calculate adjusted net income and whether you are subject to the child benefit clawback.
www.gov.uk/child-benefit-tax-charge

As @Chasingsquirrels says, the claiming back of the other 20% of your donation is between you and HMRC - the charity already has been compensated to get the full (gross of tax) donation. What you get back (if you claim it) stays in your pocket.

Op has a tax return been issued?

If so you either need to complete it or ring them up before the deadline and get it cancelled.

If one has been issued and you don't complete it, even on the basis that you don't owe anything, they will start issuing penalties for non-submission.

Often, in such circumstances, you'd be able to get the penalties to cancelled but they have no obligation to do so and it can be a bit of a ballache.