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High income child benefit charge - reducing salary

2 replies

Orangesandsatsumas · 08/01/2024 06:53

This financial year my income will come to a bit over £50,000 for the first time, meaning. I am subject to the high income child benefit charge.

I have recently taken an EV car under a salary sacrifice scheme. My understanding is that that will reduce my salary down for the income assessed for child benefit but I don't know by how much. Will it literally be by the amount I pay for the car each month and will this be the gross of net amount? I read something complicated about the car value having an impact.

I don't currently have a pension (I know that's not great!) so would like to put any excess over £50,000 into one for the first time. Is it as simple as just setting one up and adding it in? I believe I can only opt into my work pension scheme at certain points in the year and will do that next financial year.

Finally, I presume private health care does not reduce income for the purpose of the high income child benefit charge but thought I should check as it another salary sacrifice scheme ran by my employer.

Thank you for your help.

OP posts:
Nevermindtheteacaps · 08/01/2024 08:33

Your employer is breaking the law but not having you in a pension scheme unless you've opted out?

Orangesandsatsumas · 08/01/2024 10:38

I've opted out due to personal reasons at the time.

OP posts:
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