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Original poster

Child Benefit and salary - advice please

21 replies

Londono · 19/05/2023 19:16

My salary has recently increased to nearly £56,000.

How do I work out my net adjusted income? As I believe once pension contributions are deducted etc then I may still be under the £50,000 threshold for the child benefit cap. I'm a single parent of two DC with a feckless father who doesn't pay towards them so every penny helps!

OP posts:
Angelik · 19/05/2023 19:19

Your p60 will tell you. Use it to complete the self assessment. Don't avoid it. You will get found and fined

Original poster
Londono · 19/05/2023 19:21

I am absolutely not avoiding it, which is why I've posted. But I do want to keep it if I can.

OP posts:
dementedpixie · 19/05/2023 19:24

I'm sure there's a calculator on the .gov website to help work it out

Original poster
Londono · 19/05/2023 19:24

My P60 doesn't seem to have a figure that adds up my pension contributions

OP posts:
Original poster
Londono · 19/05/2023 19:26
  • The calculator doesn't do this bit for users: your salary before tax (with pension contributions under net pay arrangements deducted)
OP posts:
Original poster
Londono · 19/05/2023 19:27

So my question in my OP still stands, how do I calculate that figure...

OP posts:
Clingthefilm · 19/05/2023 19:29

Are you in a workplace pension scheme? Is it a salary sacrifice or non salary sacrifice scheme?

You can change your & contributions to keep you below £50k earnings. Then you get to keep all CB plus a bump up into your pension.

Boxbedbank · 19/05/2023 19:30

Could you try a salary calculator? Think money saving expert has one. You'd need to know your % pension contributions.

Privatemedical246 · 19/05/2023 19:30

I found looking at my march payslip had your net income somewhere written on it and as its the end of the financial year. Obvs that won't be until you've been on 56k for the whole year.

dementedpixie · 19/05/2023 19:32

Do you make contributions to a private pension?
I think it's those contributions that help lower your income for CB purposes

Heroicallyfound · 19/05/2023 19:38

Following as think this might apply to me this tax yr.

god it’s so complicated. What does “some state benefits” mean in the link @CornishTiger posted, and why doesn’t it have a definition of this? I presume widowed parent allowance is one of these as it’s paid gross then taxed through my salary. Does anyone know? I think I’ll call HMRC and get them to work it out to be sure.

CatsOnTheChair · 19/05/2023 19:44

Do you have anything other than pension that would change your taxable salary? Company car? Medical insurance are 2 fairly common ones but there are others. Also, do you have anything other than pension that reduces your taxable salary?

If no to all the above, and you know what % you contribute to your pension, you can work it out.
Otherwise, look at your next payslip and multiply your taxable income bit by 12?

titchy · 19/05/2023 19:51

Londono · 19/05/2023 19:24

My P60 doesn't seem to have a figure that adds up my pension contributions

It doesn't show pension contributions - it shows your salary AFTER pension conts have been removed.

BarbaraofSeville · 20/05/2023 07:11

Yes, your taxable salary will be shown on your P60 and is probably in the low 50s.

Eg if you pay 5% into your pension that's just under £3k pa so your adjusted net income will be around £53k. That's assuming you don't have anything like a company car.

Then when you do your tax return you will pay back aboard third of your CB and I think you can do this by PAYE, which is probably easiest as you'll just pay a bit from your salary each month and get used to your salary just being a bit lower, rather than having to pay a big amount in one go.

Rayna37 · 20/05/2023 07:28

The key questions are do you pay into your pension as salary sacrifice and what percentage, and as a PP said is there anything else which affects your taxable income (E.g. benefits in kind like a car or healthcare), and is there a bonus at all.

Would need the exact figures but if you increase your pension contributions as salary sacrifice to 10% this should almost do it for this tax year, depending on when you got the pay rise, exactly how close to 56k the new salary is and exactly what you earned so far: (56000 x 0.9 = 50400).

BarbaraofSeville · 20/05/2023 07:57

You should check 2022/3 P60 to see if your adjustment net income is above or below £50k, which it might not be.

But it's likely it will be for this tax year onwards.

You might also consider paying extra into a pension to reduce taxable salary to £50k as this will mean you don't lose over half of it to tax.

MaggieFS · 20/05/2023 08:06

Sorry I can't help on the pension, but watch out for a company car, health insurance or any other benefits in kind. I thought I'd be eligible but didn't know they counted towards "salary".

SairAPip · 19/06/2023 15:00

Londono · 19/05/2023 19:16

My salary has recently increased to nearly £56,000.

How do I work out my net adjusted income? As I believe once pension contributions are deducted etc then I may still be under the £50,000 threshold for the child benefit cap. I'm a single parent of two DC with a feckless father who doesn't pay towards them so every penny helps!

I have just dealt with this. I've increased my salary sacrifice to 10%.

Salary + Bonus + Healthcare - Salary Sacrifice = ??

Then if you are under then you'll be ok. If not, like others have mentioned adjust your salary sacrifice.

Remember other taxable benefits you may have like Company Cars or Dental

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