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pay rise and child benefit

2 replies

NK5BM3 · 02/12/2013 14:24

Hi there
I'm wondering and need some help. I currently earn between 45-50K (below 50K) and my dh is self-employed (so the last tax, he 'earned' under £10k). Child benefit gets paid into our joint account.

I'm now possibly in line for a promotion (great!) and have looked at the payscales. Basically if i get 2 increments (entirely possible), I'll hit the 50K mark. I recall that they start putting our child benefit down after 50K but I still claim the childcare vouchers at £243/month (as my kids are 5 and 3 and the 3 year old costs £800/month in nursery fees!, not to mention the 5 year old has afterschool club to pay for).

My question is: does the 50K limit kick in on my entire pay, or does it take into account the fact that I claim the vouchers and therefore I really should earn say, £53K before the child benefit gets reduced?

TIA.

OP posts:
LaCerbiatta · 02/12/2013 14:28

I believe it's what's in your p60 that matters so it would be below 50 not 53k. The same way you can increase your pension contributions to bring down your taxable income.

NK5BM3 · 02/12/2013 15:04

thanks very much. I took a look at the HMRC tax calculator (and entered some numbers!) nd it appears that if I earn just over 50K, it'll be fine, but if I jump another payscale, I'll need to pay back about £140 or so in tax.

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