High Income Child Benefit Charge - company pension

w3bbo

I am currently in the process of working out how much I owe. Thus far myself and HMRC are in dispute on the total figure. This is mainly due to I believe (perhaps wrongly?) that I should take of my pension contributions from my salary to arrive at a net adjusted income.

I have done this and worked out the figures via the .Gov calculator and informed HMRC however, they replied with the following:

We believe that you have incorrectly deducted your pension payments from your income. We only allow personal pension relief on pension payments into a private pension scheme. Payments into a company pension scheme already receive tax relief at source, therefore cannot be deducted for the purposes of the High Income Child Benefit Charge. If these payments are into a private pension scheme we will need to see documentary evidence to allow them.

My pension contributions are taken out of my gross salary before tax/NI is applied (which the calculator tells us to do). Is their response correct? For info this is a railway pension/final salary scheme. Hope someone can advise.

Dazed_and_confused

If you mean you have say, salary £60k and pay 10% as company pension deduction so your payslips and P60 shows taxable income of £54k then no, you cannot deduct them again.

Basically they aren't really relevant for HICBC as they were taken into account before you even got as far as your P60.

Sibbers123

What he said!

You are effectively double counting.

w3bbo

Not the answer I was hoping for but thanks for the advice anyway.