Child Benefit

Thegreatdom

Good Morning,

I have just been given a pay rise at work, I believe this puts me in the ‘high’ threshold for child benefit.

Is the child benefit threshold based on a single salary or on mine and my partners?

Thanks

xylophone

https://revenuebenefits.org.uk/child-benefit/guidance/how-do-child-benefit-and-guardians-allowance-work/high-income-child-benefit-charge/

Consider increasing your pension contributions.

https://www.unbiased.co.uk/news/tax/how-to-avoid-the-child-benefit-tax-charge

Provided that you have sufficient relevant earnings (income from employment or self-employment) and an unused pension annual allowance in the current tax year, you could make a personal contribution to a registered pension.

Your ANI would be reduced by the grossed up pension contribution. Thus if your ANI before the contribution was £60,000, making a net pension contribution of £8,000 would, gross up to a £10,000 deduction in your ANI to £50,000. In addition to wiping out the child benefit tax charge, you would also qualify for higher rate income tax relief of 40 per cent on the contribution.