Child Benefit Tax Charge

[Issania87]

We are now going to be earning over £50k for the current tax year, so need to think about the high income tax charge.

I know when calculating Adjusted Net Income you can take off pension contributions, but what I am not sure of is whether you can take of salary sacrifice ones.

Does anyone know?

Hasn’t it just gone up in the budget?

It’s going up to £60k on 6 April so you’re all good. It was in the budget last week.

OP said thy will earn over £50k for the current tax year which ends 5 April so the old rules still apply. New rules apply for next tax year which starts 6 April.

Don't know about salary sacrifice though OP sorry.

Salary sacrifice will have already come off your gross salary so you can’t deduct it again.

You can make an extra contribution though to bring your adjusted income down below £50k

I know when calculating Adjusted Net Income you can take off pension contributions, but what I am not sure of is whether you can take of salary sacrifice ones.

Yes you use the post-salary sacrifice number. Your employer should tell you your taxable income (i.e. post salary sacrifice) and this is the number to use.

Is that number still above £50k for the highest earner?

This is the issue, one comment says you can use income after salary sacrifice pension deduction and one says you can't 🙈.

They don't make it easy to understand, do they!

It was a good idea to make an additional pension contribution though, I will explore that. Thank you

Use either your P60 figure when that is issued or use the gross taxable income figure on your march payslip. Not the gross income, but gross taxable income. These are the figures after your salary sacrifice pension contributions. What you can't do is take your P60 figure and then deduct the pension contributions as they're already taken into account when calculating your P60 numbers.