Child benefit calculation

onlyroz

Can anybody help me figure out if I will need to pay back any child benefit this year (2017/2018 tax year)? My income is as follows:

Salary: £58260 (including bonus and on-call payments)
Pension contributions: £5000
Childcare vouchers: £1500
Taxable benefits (health insurance): £1512
Share incentive plan: £1500

What I am unsure about is whether the health insurance or the share incentive plan should be included when determining if my "income" is less than the £50k threshold for starting to pay back the child benefit.

Thanks in advance.

Darksparkle

https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips

https://www.gov.uk/guidance/adjusted-net-income

onlyroz

Thanks, but I'm still not sure if I can deduct the SIP payments from my "taxable pay".

Spendless

I'd have thought the health insurance added on to your income?

That's how it works for my DH. He has to add his benefits in kind, in his case, company car, fuel and health insurance on to his salary and that is what he reports to child benefit his income being.

The figures for the car/health insurance come from form p11d, which he gets around June time.

onlyroz

Spendless wrote: »

I'd have thought the health insurance added on to your income?

That's how it works for my DH. He has to add his benefits in kind, in his case, company car, fuel and health insurance on to his salary and that is what he reports to child benefit his income being.

The figures for the car/health insurance come from form p11d, which he gets around June time.

Yes, I'm thinking it is:

Gross salary
+ Health insurance
- Pension contributions
- Childcare vouchers

However, I'm still unsure about the SIP payments.

I've been playing around with the calculator at:

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

If I don't include the SIP payments then I think I have to pay back £17 of the child benefit for 2016/17 (taxable pay £50178), and unless I significantly increase my pension contributions I might have to pay back around £570 in 2017/18.

Dazed_and_confused

How have you arrived at £50178?

Accepting the sip element is an unknown then isn't your ani £53272?

58260 + 1512 - 5000 - 1500

Not that childcare vouchers themselves are strictly relevant, if that's salary sacrifice you simply need your P60 pay figure not a combination of pay and vouchers?

onlyroz

Dazed_and_confused wrote: »

How have you arrived at £50178?

Accepting the sip element is an unknown then isn't your ani £53272?

58260 + 1512 - 5000 - 1500

Not that childcare vouchers themselves are strictly relevant, if that's salary sacrifice you simply need your P60 pay figure not a combination of pay and vouchers?

The £50178 is from the 2016/17 tax year, taken from the "taxable pay" entry in the "This Employment" section of March's pay slip. The figures in post 1 are for the 2017/18 tax year.

Up until now I had assumed that the SIP payments would mean that I didn't have to pay back any CHB for 2016/17, and that I would perhaps have to pay back a small amount for 2017/18, but now I am not so sure.

Dazed_and_confused

So where does that leave pension contributions and benefits in kind for 2016:17?

onlyroz

Dazed_and_confused wrote: »

So where does that leave pension contributions and benefits in kind for 2016:17?

They were included in the figure - pension deductions are taken directly from gross pay by salary sacrifice, and the medical insurance is included directly on the payslip each month.

onlyroz

Right I've crunched some numbers for the 2016/7 tax year to see if I could figure out where the £50178 figure came from for my taxable income - and I'm pretty sure that this number *does* include the SIP payments.

Having gone through the numbers for the 2017/8 tax year I think my taxable income will be £51782, unless the medical insurance changes or my on-call hours change. Using the calculator at:

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

I see that I'd need to pay back £304 of the child benefit unless I modified my pension contributions.