Child benefit and wage increase?

[Keeva2017]

Quick query so I’m being totally unreasonable for abusing aibu.

Due to a pay rise I now earn just over 50k. We are talking less than a tenner over!

Do I have to do a self assessment? It seems bonkers for what is literally pennies.

Sorry again!

I know the threshold is minus pension contributions - but that doesn’t include the salary sacrifice does it? Just extra contributions?

Just put the extra in your pension.

The threshold is your gross taxable income only. If your taxable income is +£50k then you will need to self assess, even if only pennies over.

Can you salary sacrifice the amount you are over into your pension? That would put you taxable income below the threshold

Put a bit more into your pension to bring you back under

Salary sacrifice for pension adjusts your taxable income so if done that way you don’t need a tax return.

@whatkatydid2013 that makes sense, so the wage for my job is 50k plus a fiver but I’m deducted 6.8% for my pension so I’m still under the threshold.

How do u do a self assessment - probably over threshold too and would rather do what's needed than owe money or be chased for it

I am in the same boat, my salary is just over £50,000 but I pay 13% pension contributions so does that mean I’m okay? Or do I need to do a self assessment. I’ve never been near £50,000 so was never a consideration but have just been promoted.

Use this link for help

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

Thanks for the link @Beckafett

I'm in the same boat and found this useful

Here's an example...

Peter earns £52,000 a year, but 7% of his pre-tax income (£3,640) is used to make pension contributions. To see if Peter needs to pay the tax charge, we need to deduct £3,640 from his actual salary – leaving £48,360. In this case, Peter's pension contributions take him below the threshold, so he won't need to pay the tax charge.

If Peter wasn't making any pension contributions, he'd have to pay the charge, as his before-tax income would be over the threshold.

https://www.moneysavingexpert.com/family/child-benefit/#taxcharge