Avoiding child benefit tax

Dazed_and_confused

Basically yes.

Salary, wage, earnings whatever you want to call it is usually irrelevant for tax purposes. It is taxable pay that counts.

In your first example that is £50,000.

In your second example it is £60,000.

It is probably arguable that a Self Assessment return is not required in the second situation but that is a bit of a catch 22, without the return HMRC would see taxable pay of £60,000 and High Income Child Benefit Charge would appear to be applicable.

Asghar

Thank You.

Stu131526

Apologies for jumping on the back of this thread.


Does a P11D adjustment also get taken in to account? If my p60 shows an adjusted in come of say £47k and my P11D value is £7k will I then be taxed the Child benefit tax charge as the combined is greater than the £50k threshold?


Thanks in advance

TREVORCOLMAN

Talking of tax.

Get paid - pay tax.

Put money into savings account - pay tax.

Take money out of savings buy something - pay tax (VAT)

:mad:

BoGoF

Stu131526 wrote: »

Apologies for jumping on the back of this thread.


Does a P11D adjustment also get taken in to account? If my p60 shows an adjusted in come of say £47k and my P11D value is £7k will I then be taxed the Child benefit tax charge as the combined is greater than the £50k threshold?


Thanks in advance

Yes, your net adjusted income includes benefits in kind.

cloud_dog

Fixed your misquotes.....

TREVORCOLMAN wrote: »

Talking of tax.

Get paid - pay tax on some of it

Put money into savings account - pay no tax below £1k pa for BRT.

Take money out of savings buy something - pay tax (VAT) on some things

:mad:

Don't get mad, just be more selective on what you spend your money on

unholyangel

TREVORCOLMAN wrote: »

Talking of tax.

Get paid - pay tax.

Put money into savings account - pay tax.

Take money out of savings buy something - pay tax (VAT)

:mad:

You don't pay tax on the money you put into savings. Only on the interest you earn from having that money in savings.

The truth is, however much you're paying in tax its most likely not enough to cover your "share" - unless you're in the top 5% highest earners.

TREVORCOLMAN

Or like a comedian once said:

You come into this world with nothing.

If you go out in debt then you have made a profit.

:rotfl: