Child benefit and tax

[Autieangel]

Last year dh earned 55k . The threshold for child benefit is 50k so he is 5k over but do work pension contributions come off your salary for the final figure for what we need to pay back? His pension contributions were around 4.5k. And does anyone know how much we would have to pay?

It's about 10% per every £1k over £50k and at £60k it would all be paid back. There's a calculator on the .gov website I think

Thanks do you know if that includes pension or if pension is deductible?

He will need to do the self assessment tax return on time to avoid a £100 fine as well.

And remember it is not just salary, benefits in kind like medical insurance, company car etc count too.

Calculations are based on taxable income, which in his case is salary minus pension contributions. So, a little will be paid back. As pp said, it’s worked out via a self-assessment tax return he should complete for the previous tax year

Yes the pension is deductible

You will only need to pay tax on the £500 gap between pension contributions and £50k - so not that much.

He needs to do a self assessment tax return. That will tell you what you owe and then you get the choice if repaying through your tax code or paying it off by end of January.

The deadline for self assessment is 31st January but you are better doing asap so you know what you owe.

www.gov.uk/government/news/100-days-to-go-to-self-assessment-deadline#:~:text=Customers%20have%20just%20100%20days,2022%20to%202023%20tax%20year.&text=Self%20Assessment%20customers%20have%20just,Customs%20(%20HMRC%20)%20has%20said.