Child Benefit High Earner Charge and Salary Sacrifice

cakeforbrains

Hi there. Just a quick question.

I know that if you earn over £50k you can reduce your high earner child benefit tax liability by salary sacrificing to a pension or childcare vouchers, but what about other things? My husband's employer allows him to salary sacrifice to buy family health insurance. Would doing this still reduce his adjusted net income accordingly?

If it does it seems worth is as for every £500 he earns about £50k we only actually 'see' £160 once they've taken off standard taxes and the child benefit repayment.

JimmyTheWig

No, that wouldn't work.
He is reducing the amount of cash he gets each month but not reducing the amount of value that he gets each month.
So his tax bill wouldn't reduce, neither would his child benefit liability.

The only things that you can use are things that lower the amount of tax that you pay. The only thing you haven't mentioned that comes to mind is charity donations.

SkyeKnight

I think the "Bike to Work" scheme is also paid by salary sacrifice -- so maybe that would count too?