Child benefit repayment

MattyNeth

Hello - I hope someone can help me as I am totally confused reading different articles about repaying child tax benefit with the introduction of the high income child benefit charge.

If my gross salary (before anything is taken off at source) is £55000 I believe I can deduct some items to reduce this figure to an adjusted taxable income which is used to calculate how much I would need to repay.

So in the last tax year (2013-2014) if I made the following do I escape repaying anything as it reduces my adjusted taxable income to £50000 exactly.

£2000 in pension contributions deducted at source to my work place pension scheme
£2000 child care vouchers deducted at source
£1000 cycle scheme vouchers deducted at source

The HMRC website is extremely unclear on this.

pmlindyloo

MattyNeth wrote: »

Hello - I hope someone can help me as I am totally confused reading different articles about repaying child tax benefit with the introduction of the high income child benefit charge.

If my gross salary (before anything is taken off at source) is £55000 I believe I can deduct some items to reduce this figure to an adjusted taxable income which is used to calculate how much I would need to repay.

So in the last tax year (2013-2014) if I made the following do I escape repaying anything as it reduces my adjusted taxable income to £50000 exactly.

£2000 in pension contributions deducted at source to my work place pension scheme
£2000 child care vouchers deducted at source
£1000 cycle scheme vouchers deducted at source

The HMRC website is extremely unclear on this.

Try using this calculator:

https://www.gov.uk/child-benefit-tax-calculator/main

MattyNeth

Thanks for the reply. Yes I checked that calculator which on the face of it is very useful.

There is a section which specifically says "Pension contributions deducted from your pay". Perfect for me as that will reduce my net taxable income.

However, the self assessment form states under the tax relief section "Do not include payments you make to your employer's pension scheme which are deducted from your pay before tax".

There's nothing on the self assessment form about tax relief for cycle scheme or child care vouchers which are on the calculator. All very confusing!

pmlindyloo

This may help a little. At the very least it shows you are not alone.

A couple of points to check about the pension and cycle to work scheme.

http://www.pistonheads.com/gassing/topic.asp?h=8&t=1370370&mid=0&nmt=Tax+return+advice+please+

If this doesn't solve your problem/make sense then I am a great believer in going to the boss - give HMRC a ring!

sheramber

Your P60 shows total taxable pay therefore any deductions will have already been taken off to arrive at that figure.