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

Anon

Stupid question alert ... is the figure used as the basis for this your taxable income (ie after personal allowance of £7k ish - so actually £57k) or £50k after pension taken off but before personal allowance?

Many thanks

Anon

zagfles

Anon wrote: »

Stupid question alert ... is the figure used as the basis for this your taxable income (ie after personal allowance of £7k ish - so actually £57k) or £50k after pension taken off but before personal allowance?

Many thanks

Anon

No you don't take the personal allowance off, so it's £50k after taking pensions etc off but not personal allowance

Skint_yet_Again

There is more information about how to calculate adjusted net income here

http://www.hmrc.gov.uk/adjustednetincome/

Hth

Morgage_Confused

Hi can someone just clarify if I need to fill in a self assessment or not.
I got the child benefit letter today.

PAYE, salary 52k
Pension contributions 478 per month
Childcare vouchers 124 per month
Ride to work scheme 90 per month

So I think I am correct in saying the "adjusted net income" is
52000 minus 5736(pension) minus 1488(vouchers) minus 1080(ride scheme)......giving adjusted net as 43696.

So well below the 50k threshold for adjusted net. Sooooo do I have to tell them this or not? Do I need to put those figures in a self assessment?

thanks

ederj

I cannot understand why someone earning £50k pa would want/need ANY kind of benefit!!

Notjustamum_2

ederj wrote: »

I cannot understand why someone earning £50k pa would want/need ANY kind of benefit!!

My husband earns around £53000 per year and until recently I earned nothing. These figures are as of late last year when I was explaining how just because someone is a higher rate taxpayer it doesn't mean they are "rich".

This salary gives a monthly net income of £3100 - sounds great doesn't it?

Now take off travel (essential to earn the money in the first place) £160 per month, mortgage £900 per month, endowment policy £90 per month, insurances £150 per month, council tax £145 per month, pension £200 per month - that's half the money gone already. Now pay utilities - our gas and electric is a lot cheaper than our friends at £100 per month, water averages about £25 per month, dinner money for one of the children £12.50 per week for 39 weeks per year works out to £40 per month spread over the year. That's £1,770 now. Then we have to take into account the "free" education our children receive. As I am not on benefits I have to pay in full all the "voluntary contributions" to the children's schools. £50 per year to each of them for school fund, £80 per year for swimming for one of them, so far my junior school child has had trips totalling £75 since September, my secondary school child has had £90 worth and I just got a letter for another one coming up which costs £250 and she does have to go as it will give 30% of the mark for one of her GCSEs so miss the trip and fail the GCSE! Food, clothes, shoes, entertainment (one week self catering in the west country for holidays), house maintenance, car running costs.

BUT I wouldn't object to effectively losing my child benefit if everyone with a total family income the same or more than mine lost theirs too but it doesn't work like that. £53,000 pa after tax and NI is just over £3100 pm. Two people earning £26,500 each (£53000 total) would bring home £3424 pm between them so over £300 more PLUS they can keep their child benefit. How on earth can that be fair?

zagfles

Morgage_Confused wrote: »

Hi can someone just clarify if I need to fill in a self assessment or not.
I got the child benefit letter today.

PAYE, salary 52k
Pension contributions 478 per month
Childcare vouchers 124 per month
Ride to work scheme 90 per month

So I think I am correct in saying the "adjusted net income" is
52000 minus 5736(pension) minus 1488(vouchers) minus 1080(ride scheme)......giving adjusted net as 43696.

So well below the 50k threshold for adjusted net. Sooooo do I have to tell them this or not? Do I need to put those figures in a self assessment?

thanks

Are the pension contributions taken from your pay or a personal plan? Is the PAYE income your P60 income or your annual salary?

If your P60 income is over £50k you'll probably have to do a tax return. But if the pension contributions are deducted from pay and your salary is £52k then your P60 income should be well under £50k, so you should be OK.

zagfles

ederj wrote: »

I cannot understand why someone earning £50k pa would want/need ANY kind of benefit!!

Try reading the thread then.

Morgage_Confused

Thanks zag...just to clarify.....im pretty sure I dont have to pay any extra tax its more of a question of whether or not I must put this in a self assessment or not.

The 52k salary is my official salary. This year its well below due to maternity leave. So I know this year I am well below so should I just ignore the hmrc letter this year?

Then for next year for example the pension payments are 11% of my salary and are taken monthly from my pay. So if these are ok to count in the adjusted net then I will be well below next year aswell. (And as my pay has been frozen for 3 years I cant see it going up any time soon.)

Notjustamum_2

We were advised by a local tax accountant that as we claim child benefit and earn over £50k pa then OH needs to do a self assessment even though pension and charity donations take adjusted net pay to well below. They did say that self assessment is generally very simple to do without any need to involve professionals.