Child Benefit (family allowance)

unsure100

Hi,
Please could you advise as I am really confused about child tax credit.


I will be having a one off bonus this year which will take me to around £58000 in income.


I have two children who I claim child benefit for.


I get a company car which according to my p11d is £6,500 of taxable benefit but this is reflected in my tax code. (not 351L)


I pay approx. £2,000 into my pension.


I plan to stop the child tax benefit but this will be the only year I go over (as a one off)


So if I owe any more tax do I pay it all in one go, or can I stop this years and use it to cancel it out iyswim


How much roughly would I owe?


Thank you

Darksparkle

You’ll have to repay everything you received since April until you cancel it.

Dazed_and_confused

Your tax code isn't really all that relevant when it comes to the High Income Child Benefit charge, what matters is something called adjusted net income (Google is your friend!).

From your op this will be at least £64,500 (salary plus car benefit) so even if the pension contribution is deductable (sometimes it is but it might be your salary is actually £60,000 and after pension deduction your taxable salary is £58,000) it would still leave you over the upper £60,000 threshold.

So it looks like you will have to pay it all back.

You do this by completing a self assessment tax return. The return (for 2017:18 tax year) needs to be sent to HMRC by 31 January 2019 and whatever you owe needs to paid by the same date.

If you send your return in by 30 December 2018 (I think) and you are still working then it might be possible for you to pay the tax out of your wages by including the amount owed as an extra deduction in your tax code from 6 April 2019 to 5 April 2020.