High Income Child Benefit Charge

borgon_baxter

can anyone confirm that my understanding above is correct?

Thanks

mostwelcome

I don't understand the net pay nuance but it seems to me that paying the £5k into a personal pension would reduce your ANI. Not sure about paying into your workplace pension

xylophone

Do you have any other income (including interest and dividends) as well as employment income?

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

On-the-coast

Since i presume you’re trying to plan for this tax year... the P60 generally comes to late to help. However, your “taxable gross” on your payslip usually ends up being exactly the same figure as is used as the “use this figure for your tax return if you do one” entry on you P60.
Thus, if you’re happy to wait until your March 2020 payslip... you can
A) identify taxable gross from your March salary (takes into account whatever your company has done w.r.t. pensions as far as i know... and also covers any other taxable benefits you receive from your company.
add on bank interest / dividends if any (remembering to only add half if they are in joint accounts)
C) remove any charitable donations that your payroll doesn’t know about (e.g. that £20 you donated / added your address so someone could reclaim gift aid (you did keep some evidence didn’t you?).

If A+B-C > 50k then you can make a payment into some sort of pension vehicle ... or a gift to your favourite charity, and receive both Higher Rate tax benefit and preserve your child benefit.

If you get the calculation wrong by a few quid... don’t obsess over it. even if you’re a 500 over the limit you’ll only lose 5% of the total child benefit.