Self assessment or not

kate6000

Hi
I am utterly confused about the new child benefit charge and salary sacrifice

I earn over 50k but below 60k so assumed I now needed to go down the self assessment route, however I salary sacrifice for pension which takes me under 50k and according to the government calculator there is no charge

Does this mean I don't need to do the self assessment form

I don't have any other incomes etc to declare

Thanks in advance
Kate

hcb42

I would think you don't need to do the form

chrismac1

I agree on the face of your post. People in your situation need to monitor this as the end of the tax year gets near in March, and take action to keep below that £50k figure. Check out some of the hard luck posts on this site, only a fool volunteers for self-assessment!

I've written articles about this in the local paper, posted it on my website and social media, told folks about it down the pub. Yet one of my best mates who I see at least once a week last week admitted he'd failed to take any of my advice and was now getting child benefit clawback!

Don't sleep walk your way into this situation! 80% of people in the £50k to £55k bracket can avoid this hit sensibly by pension investment.

dano17439

I would do one. You can claim 40% relief on your pension. HMRC will see your salary level, give you a rebate and then increase you tax code and say you don't need to do another one again.

Laurajo_2

If it's salary sacrifice, tax relief will usually be dealt with through PAYE - the only difference between that and a traditional workplace pension is the NI saving.

So it wouldn't be entered on the tax return, the gross taxable amount on the p60 would be net of the amount sacrificed for the pension contributions.

kate6000

Hi All,
Thanks for the responses

It is a salary sacrifice through PAYE

What I hadn't realised with the child benefit is that you only need to do the self assessment if your TAXABLE salary was over 50k, this is where I've got confused, every year I keep the taxable element under so will continue to do so

I assume by doing this I don't need to let HMRC know and they work it out for themselves?

Thanks
Kate

Laurajo_2

If you're under the 50k, you don't need to take further action.

Just monitor it...for example, if you get a bonus or something one year or have exceptionally high earnings, or start receiving money from another source etc you'll need to let them know....otherwise, you're good to go!

NB You may be already aware, but just for completeness, if you have a partner who lives with you and is earning 50k taxable, he or she will have to register regardless of whether they are the biological parent of the child.