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Advice on Child Benefit over 50k

2 replies

ChildBenefit · 17/04/2023 10:07

This is a thread about continuing to retain eligibility for child benefit over 50k income, please do not read if the subject is going to bother you. Posting here rather than in money matters for traffic. Namechanged regular, EKL/Center Parcs etc.

In a few weeks, my income will change and my salary minus usual pension contributions will be over 50k. I want to continue being eligible for full child benefit, and do it by increasing pension contributions rather than working less.

Afaik the relevant figure for CB eligibility is the one on the P60 at the end of the tax year, ie 2023-4 in this case. Because my income won't increase until about June, I'll only have 10 months at the new rate and my annual earnings will still be below 50k after pension. It won't be until 2024-5 tax year that I'll have 12 months at the higher income, if that makes sense.

So my question is, do I need to start making the extra pension payments as soon as I get the pay increase, or can it wait until next tax year?

OP posts:
vinoandbrie · 17/04/2023 10:18

If your adjusted net income for pension purposes for 6 April 2023 to 5 April 2024 will be <£50k, then no action needed until next tax year (24/25).

Be aware though of what constitutes adjusted net income for these purposes, to avoid any ambiguity: https://www.gov.uk/child-benefit-tax-charge

High Income Child Benefit Charge

High Income Child Benefit Charge - check if you're affected, how and when to pay this tax charge, opt out and restart Child Benefit payments.

https://www.gov.uk/child-benefit-tax-charge

ChildBenefit · 17/04/2023 11:25

Thank you very much for your help! I did see the page you'd linked to but didn't really get it, so it's much appreciated. I might actually start the pension payments earlier because I really need to improve mine, but it's good to have the option.

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