net income on child benefit

[Madeyemoodysmum]

Please can anyone clear up if the child benefit will be taken from net income
Does it mean you have to be earning a lot more than 60K to actually loose?
Confused!
thanks

It's assessed on your gross income. If the household has one earner who earns over £50k before tax, the child benefit will be "phased out" although what that actually means is anybody's guess ....

Net acc to HMRC website.

Net? Seriously? So what gross salary would that equate to then? £70k or more??

The answer to this was given on teh other thread. It apparently means gross income net of any contributions to pensions, gift aid, etc.

It'll probably mean, in practice, that more people on PAYE will have to submit a self-assessment tax return. If the boxes are ticked for 'children' it will be assumed CB has been claimed and, if the gross income is over £50k, that will trigger a process which then adjusts your tax-code going forward.

Does anyone know how it will work with dividend income rather than PAYE? Will it be taken on net income post corporation tax, or turnover?

If the recoup is going to happen through the tax system, it would probably be taxable income that applies.

That was my guess too. However I've just worked out that it will be my Jan. 2015 tax return before I need to worry about it, so some way off!

www.hmrc.gov.uk/budget2012/tiin-0620.pdf

Guidance note from HMRC. Clear as mud really.