Question for those earning just over 60k (child benefit related)

[ShhhYouDontKnowMe]

I know I should be able to work this out but it’s been a very long day and I also know someone on here will know the answer!

Recent pay rise has tipped me just over 60k annual salary. I know that my pension contributions quickly take me back under 60k. I’m PAYE if that matters and pay about 8% into pension monthly. No other income.

Do I need to do self-assessment tax return or am I fine not to for as long as my pension contributions keep me under 60k?

If your pension contribution takes your annual salary to under £60k you do not need to do anything. If you do go above £60k you can ask HMRC to adjust your tax code you do not need to submit a tax return unless you want to (if you go over £60k).

You only need to do anything if the number on your annual P60 statement goes above £60k. That will show your annual salary less the deductions to your pension.

If it does go above by a small amount, just contact your pension provider and arrange to make an additional contribution into your pension to bring the total back under the threshold.

Many thanks both - it’s more straightforward than I thought then!

Just be careful if you have any other income e.g. savings interest, taxable benefits or bonuses as they count too. Gift aid donations help reduce income. It's the adjusted net income in the tax year that matters not your salary.

You can go on the HMRC app and select the option to pay it back through PAYE so even easier now!