Please help me understand child benefit high earners charge

[Tomatojuiceandvodka]

Hi, I’m hoping someone can help me because I just can’t get my head around this.

i know that once one parent is earning over 50k, you lose some of your child benefit. However, I believe that that 50k has to be your adjusted net income. I just can’t get my head around what adjusted net income actually means.

my salary has just gone up to 54800. Prior to that it was 50100 but 23-24 is the first tax year my gross pay has been over 50000 (I’m a teacher and so I get a pay rise in September so prior to sept 2022 I was well under 50k meaning my total for 2022-23 was under 50k even though I was on 50100 from sept 2022-aug 2023 iyswim).

i think this means that at the end of this financial year I need to fill in a self assessment tax return and pay back some of the child benefit I’m receiving. However some people are telling me that the 50k cut off is based on your pay after pension deductions. I pay about 10.5% pension, so after pension I earn just below 50k.

do I or don’t I need to pay any back? If so what do I fill in?for context I’m divorced from kids dad. I’m the resident parent. My dp earns well under 50k

thank you for anyone who can clarify

If your gross salary is £62k and you pay 10% pension contributions you will be fine. Adjusted net earnings will be c.£55k. If your contributions are deducted by salary sacrifice, the relevant figure will be on your P60, towards the top on the right hand side ("total for year").

This was my earnings when the threshold was 50k (2022-2023) xx

Ah sorry, the £60k threshold is for the current tax year so ignore my comment above! You should still get to keep some of it though.

Thank you. I'm really annoyed with myself for not realising. I won't need to pay it for 24-25 as I took a step down at work. HMRC haven't been in touch - and I've read comments on here saying along the lines of "it's your job..." but I've read on HMRC that "HMRC check taxpayers records each year and, where the relevant information is held, write to customers who may need to register for Self Assessment to pay HICBC." The fact I've realised means I will register (even though all day today their website button to do this has not worked at all and I've tried all day) but I know people in the same boat (had no letter) who aren't going to do anything.

And if you do one for 2023-4 you need to do annual SA returns until hmrc advise otherwise or you phone and agree not required. Even if you think nothing is due.

I'm really worried about being fined.
My DH however is annoyed with me for being worried. He says there's no point worrying until I speak to HMRC. Easier said than done.

The limit has increased now so I am fine but you would deduct teacher pension but not personal allowance I believe

The personal allowance has already been accounted for in your P60. You only separately deduct pension contributions that have not been taken via salary sacrifice. If salary sacrifice then you just use the figure in your P60 (because your salary is already the reduced amount to reflect the sacrificed contributions, which are deemed to have been paid by the employer).

Thank you. I've just been able to register for self assessment (HMRC website wasn't working yesterday for that) so I feel better that I've got the ball rolling.