Checking numbers...

ac198179

Hi,

Would someone be able to check my numbers for me please? I'm paranoid I'm going to get it wrong - I'm trying to reduce my adjusted net income so that I don't have to pay back child benefit. What I have is a total taxable pay of £64,769.46 (pension has already been taken off as salary sac), I've already paid £1050 into a SIPP (grossed up to £1312.50). I believe I need to make a further payment to my SIPP of £10,765.58 (which would be grossed up to £13,456.97) to bring my adjusted net income down to £49,999.99?

Many thanks!

[Deleted User]

ac198179 said:

Hi,

Would someone be able to check my numbers for me please? I'm paranoid I'm going to get it wrong - I'm trying to reduce my adjusted net income so that I don't have to pay back child benefit. What I have is a total taxable pay of £64,769.46 (pension has already been taken off as salary sac), I've already paid £1050 into a SIPP (grossed up to £1312.50). I believe I need to make a further payment to my SIPP of £10,765.58 (which would be grossed up to £13,456.97) to bring my adjusted net income down to £49,999.99?

Many thanks!

Exactly that - although I think that I would be giving myself a little more margin for error!

MDMD

purdyoaten2 said:

ac198179 said:

Hi,

Would someone be able to check my numbers for me please? I'm paranoid I'm going to get it wrong - I'm trying to reduce my adjusted net income so that I don't have to pay back child benefit. What I have is a total taxable pay of £64,769.46 (pension has already been taken off as salary sac), I've already paid £1050 into a SIPP (grossed up to £1312.50). I believe I need to make a further payment to my SIPP of £10,765.58 (which would be grossed up to £13,456.97) to bring my adjusted net income down to £49,999.99?

Many thanks!

Exactly that - although I think that I would be giving myself a little more margin for error!

As above - don’t forget to make sure you have included all other sources of taxable income. 

This will include any interest or dividends covered by the “allowances” as this is still taxable income, even if it’s at 0%. You don’t want a couple of pounds of bank interest to mess it all up!

ac198179

purdyoaten2 said:

ac198179 said:

Hi,

Would someone be able to check my numbers for me please? I'm paranoid I'm going to get it wrong - I'm trying to reduce my adjusted net income so that I don't have to pay back child benefit. What I have is a total taxable pay of £64,769.46 (pension has already been taken off as salary sac), I've already paid £1050 into a SIPP (grossed up to £1312.50). I believe I need to make a further payment to my SIPP of £10,765.58 (which would be grossed up to £13,456.97) to bring my adjusted net income down to £49,999.99?

Many thanks!

Exactly that - although I think that I would be giving myself a little more margin for error!

Thanks - yes, going to pay a little extra to cover any slight variances in the figures.

Dazed_and_C0nfused

Have you taken into account any interest and dividends?

Although this income may well be taxable at 0% it still forms part of your adjusted net income.

And don't forget the point at which HICBC starts to be charged is £50,100 not £50,000.

ac198179

MDMD said:

[Deleted User] said:

ac198179 said:

Hi,

Would someone be able to check my numbers for me please? I'm paranoid I'm going to get it wrong - I'm trying to reduce my adjusted net income so that I don't have to pay back child benefit. What I have is a total taxable pay of £64,769.46 (pension has already been taken off as salary sac), I've already paid £1050 into a SIPP (grossed up to £1312.50). I believe I need to make a further payment to my SIPP of £10,765.58 (which would be grossed up to £13,456.97) to bring my adjusted net income down to £49,999.99?

Many thanks!

Exactly that - although I think that I would be giving myself a little more margin for error!

As above - don’t forget to make sure you have included all other sources of income. 

This will include any interest or dividends covered by the “allowances” as this is still taxable income, even if it’s at 0%.

So in working out my total taxable pay I need to include the small amount of savings account interest I've received, even if it's under the savings interest allowance?

Dazed_and_C0nfused

There is no allowance for interest.

There is s 0% rate band (the savings nil rate) where upto £1,000 interest is taxed at 0%.

This is still taxable income and is part of your adjusted net income.

Same for dividends taxed under the dividend nil rate band.

ac198179

Thanks everyone - glad I came here to check! I'll adjust my figures to take account of bank account interest. What about if I claim the working from home tax relief on my self-assessment this year (genuine claim, been at home since March)? Does that increase my taxable pay or does the £6/week get knocked off my taxable pay?

Dazed_and_C0nfused

Does that increase my taxable pay or does the £6/week get knocked off my taxable pay?

That would reduce your taxable pay.  Not sure why you think claiming an expense would increase it, if that were the case it would surely be better to just not claim it 

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/

[Deleted User]

ac198179 said:

Thanks everyone - glad I came here to check! I'll adjust my figures to take account of bank account interest. What about if I claim the working from home tax relief on my self-assessment this year (genuine claim, been at home since March)? Does that increase my taxable pay or does the £6/week get knocked off my taxable pay?

It reduces your taxable pay. However, we are dealing with small margins here! Personally, from your first post where there was no mention of any income other than salary, I would be rounding up my contribution to £11000. But, each to their own!

ac198179

Dazed_and_C0nfused said:

Does that increase my taxable pay or does the £6/week get knocked off my taxable pay?

That would reduce your taxable pay.  Not sure why you think claiming an expense would increase it, if that were the case it would surely be better to just not claim it 

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/

Good point - I get myself in such a muddle sometimes thinking about these things!