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Original poster

Child benefit tax earn over 50k

14 replies

ServerSurfer · 16/09/2022 22:22

Hi everyone!

I've just had a promotion and this takes me between 50-60k

Before I was earning £44k

Is there anyone out there who understands the tax implications and how I should go about the child benefit ?

OP posts:
RagzRebooted · 16/09/2022 22:23

Will you go over this tax year? You'll have to work it out as you may not as we're half way through.

FernGilly · 16/09/2022 22:24

Put anything over 50k into you pension then you don’t have to do anything!

Original poster
ServerSurfer · 16/09/2022 22:24

RagzRebooted · 16/09/2022 22:23

Will you go over this tax year? You'll have to work it out as you may not as we're half way through.

Not sure - I will have to do some sums 😬

OP posts:
Original poster
ServerSurfer · 16/09/2022 22:25

FernGilly · 16/09/2022 22:24

Put anything over 50k into you pension then you don’t have to do anything!

That's a good shout. I am already putting in the max that the company match... I guess I could put more

OP posts:
ArcticSkewer · 16/09/2022 22:27

Are you actually earning over £50k once you deduct pension contributions?

SGChome20 · 16/09/2022 22:30

Yes, as I understand it you take your salary minus the amount you pay into pension. My DH earns over £50k but pays a lot into pension and brings it down to below the £50k so we’ve done nothing and I’m hoping we’re right!

magaluf1999 · 16/09/2022 22:31

Use the online calculator on the child benefit website and it does it all for you.

As pp said. The 50k is after pension contributions in most cases. So its probably still worth claiming. Or you want to be comfortably under you could up your pension contributions.

The claw back is tapered so its still worth having up to a point.

Original poster
ServerSurfer · 16/09/2022 22:32

Oooo thank you everyone - I've worked out wage after pension taken out and actually, it's just under £50k ☺️ does this mean I don't need to self assess or anything?

I'll probably have to reassess next tax year.

OP posts:
Original poster
ServerSurfer · 16/09/2022 22:37

magaluf1999 · 16/09/2022 22:31

Use the online calculator on the child benefit website and it does it all for you.

As pp said. The 50k is after pension contributions in most cases. So its probably still worth claiming. Or you want to be comfortably under you could up your pension contributions.

The claw back is tapered so its still worth having up to a point.

The calculator assumes the same salary throughout the whole period so didn't help in my case, thank you though

OP posts:
EasterIssland · 16/09/2022 22:38

ServerSurfer · 16/09/2022 22:32

Oooo thank you everyone - I've worked out wage after pension taken out and actually, it's just under £50k ☺️ does this mean I don't need to self assess or anything?

I'll probably have to reassess next tax year.

Exactly. It’s after the pension
i got £54 last year and paying back £600 as part of my tax.

Drywhitefruitycidergin · 16/09/2022 22:39

Sounds like you have it figured out, just one thing I would add. When you do have to self-assess you have to register by a certain date ( i think it's October) so that you get the account numbers that you need to do the return.

LionessesRules · 16/09/2022 22:55

I think you would be best to register as self assessment, and show 0 deductions needed than get caught as nominally earning over 50K.

If you are PAYE with nothing weird and wonderful in your accounts (looking at you, DH withh overseas bank accounts) the self assessment is fairly straightforward.

Original poster
ServerSurfer · 17/09/2022 06:45

Drywhitefruitycidergin · 16/09/2022 22:39

Sounds like you have it figured out, just one thing I would add. When you do have to self-assess you have to register by a certain date ( i think it's October) so that you get the account numbers that you need to do the return.

Thanks, this is good to know!

OP posts:
Original poster
ServerSurfer · 17/09/2022 06:47

LionessesRules · 16/09/2022 22:55

I think you would be best to register as self assessment, and show 0 deductions needed than get caught as nominally earning over 50K.

If you are PAYE with nothing weird and wonderful in your accounts (looking at you, DH withh overseas bank accounts) the self assessment is fairly straightforward.

I might actually do this, as I have realised I've earned over the £1k limit for a side hustle - it's probably best to be safe

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