Anyone had a letter from HMRC yet about Child Benefit Tax?

Morgage_Confused

So is it what your p60 shows or what your official salary is?
Is a work pension deducted from your gross salary to get the adjusted net?
Do you need to do self assessment if the adjusted net is below 50k whilst official salary is over 50k.?
Man this is so confusing.

pinkpig08

We had a letter the other day, but my husbands average earnings including (lots of) overtime are around £44k. I didn't think it affected us so not sure why we've had a letter?

zagfles

Morgage_Confused wrote: »

So is it what your p60 shows or what your official salary is?
Is a work pension deducted from your gross salary to get the adjusted net?
Do you need to do self assessment if the adjusted net is below 50k whilst official salary is over 50k.?
Man this is so confusing.

Your P60 (taxable) income is the starting point. Not official salary. Most work pension contributions are deducted before tax so if you earn £52k and pay 11% pension contributions you'll only get taxed on £46280.

Look at your taxable pay to date on your payslip and how it changes from one month to the next to confirm work pension contributions are deducted before tax. Childcare vouchers probably are too. Once confirmed, if you can see that your taxable pay won't exceed £50k, you don't need to worry, assuming you don't have any other income or taxable benefits (P11D) which will take your taxable to over £50k, you shouldn't need to do a tax return.

If your P60 income does go over £50k then you probably need to do a tax return even if other stuff takes your ANI below.

That's my understanding anyway...but as above if your tax affairs are simple (eg just employment income and maybe a bit of interest) a tax return is fairly simple.

John_Pierpoint

http://www.theguardian.com/society/datablog/2012/jun/22/household-incomes-compare



Plus ca change.......?



http://en.wikipedia.org/wiki/Vilfredo_Pareto

Lozz

I would also appreciate some help on whether OH has to complete a self assessment, as a recent letter from HMRC and their own website completely contradict each other. The letter states any income over £50,000 and use the tax year 2012/2013, their website says no tax to pay if salary is under £50,999 and uses tax year 13/14.

OH's P60 states he earned £50,046 in 12/13! His income is going to be well under £50k this year due to increased pension contributions, and in both tax years we have/will be paying £480 in gift aid.

I've calculated (I may be wrong) that if he is liable the tax owed should be no more than £5.64 so would rather he didn't get a £100 fine for not completing a self assessment for the sake of just over 50p per month lol.

TIA.

Lozz x

zagfles

Lozz wrote: »

I would also appreciate some help on whether OH has to complete a self assessment, as a recent letter from HMRC and their own website completely contradict each other. The letter states any income over £50,000 and use the tax year 2012/2013, their website says no tax to pay if salary is under £50,999 and uses tax year 13/14.

OH's P60 states he earned £50,046 in 12/13! His income is going to be well under £50k this year due to increased pension contributions, and in both tax years we have/will be paying £480 in gift aid.

I've calculated (I may be wrong) that if he is liable the tax owed should be no more than £5.64 so would rather he didn't get a £100 fine for not completing a self assessment for the sake of just over 50p per month lol.

TIA.

Lozz x

If he's paid gift aid then he should be doing a tax return anyway, as he'll get a rebate of 25% of the amount paid.

Lozz

zagfles wrote: »

If he's paid gift aid then he should be doing a tax return anyway, as he'll get a rebate of 25% of the amount paid.

Oh I didn't know that, thanks for the info. Will look into getting it done then.

Lozz x