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child benefit - think I missed I went over 50K limit......

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child benefit - think I missed I went over 50K limit......

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doodardiddydoodardiddy Forumite
1 posts
MoneySaving Newbie
Hi,
Got a nasty feeling I went over the 50K threshold on the child benefit system for 2018-2019 tax year :( I started a new job where bonuses seem to be decided on a whim and it never crossed my mind that I might have got anywhere near the limit. I'm likely about 1K over, I've put in my figures on the calculator to test and registered for a self assessment reference number just to be on the safe side. One thing I can't find any information on though is whether student loan deductions are factored in when assessing my income? Since they appear on my PAYE payslip and aren't optional, would they reduce my income in the eyes of the threshold calculation? There isn't the option to add it in so I'm not holding out much hope, just annoying that I believe the late payment fine will be about the same as the tax I need to pay! Feel stupid to have overlooked this.......

Replies

  • edited 10 February at 9:51PM
    Dazed_and_C0nfusedDazed_and_C0nfused Forumite
    1.3K posts
    1,000 Posts Name Dropper
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    edited 10 February at 9:51PM
    No, student loan payments don't reduce your taxable or adjusted net income.

    What penalty?  You do realise that once a tax return is issued you will have 3 months to complete and return it. 

    You will definitely be charged interest on tax paid late i.e. after 31 January 2020, but not sure what penalty you mean (there are several different types of penalties).
  • CSL0183CSL0183 Forumite
    50 posts
    Eighth Anniversary 10 Posts
    Hi,
    Got a nasty feeling I went over the 50K threshold on the child benefit system for 2018-2019 tax year :( I started a new job where bonuses seem to be decided on a whim and it never crossed my mind that I might have got anywhere near the limit. I'm likely about 1K over, I've put in my figures on the calculator to test and registered for a self assessment reference number just to be on the safe side. One thing I can't find any information on though is whether student loan deductions are factored in when assessing my income? Since they appear on my PAYE payslip and aren't optional, would they reduce my income in the eyes of the threshold calculation? There isn't the option to add it in so I'm not holding out much hope, just annoying that I believe the late payment fine will be about the same as the tax I need to pay! Feel stupid to have overlooked this.......
    Any penison payments can be deducted so it will ne taxable salary where you will fall foul of the CB rules.
    In addtion, I wouldn't worry much as it looks like you earned only £1k over. It's on a sliding scale where CB is fully revoked at earnings of £60k so with a taxable salary of only £51k, you will only lose 1/10 (Thereabouts) of the child benefit received.

    I wouldn't even bother worrying about it, it's unlikely they will chase you. In future, make sure your taxable pay falls at £49,999 by making pension contributions.
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