child benefit tax charge

deft

Owing to a bonus my income was higher than £50K this year and I realized that it might affect entitlement to child benefit for my child. Here's my income, am I right that - because of my pension contribution, I don't have to pay a tax charge (yet)? 
Income: £52300
Medical insurance benefit: £1,700 
Pension contribution: £4,400
Home working allowance: £312 
Thank you. 

Dazed_and_C0nfused

How do you get money into your pension?

There are several methods and they work slightly differently.

Net pay

Relief at source 
Salary sacrifice (sometimes called smart pension)

Relief at source gets tax relief added so if it is that method is the £4,400 net or gross?

deft

It's not salary sacrifice, it's probably relief at source? Payslip deductions summed up are £4400 and Aviva added 20% relief. And I guess I need to call HMRC to ask for extra tax relief for 2020-2021?

Dazed_and_C0nfused

Yes.  From what you've posted the gross contribution would be £5,500 and you would due a bit of higher rate tax relief on this (not another 20% though).

HICBC is based on adjusted net income and yours is under £50,100 so no no charge would apply.  Assuming you haven't omitted any other taxable income such as (non ISA) interest or dividends.

deft

Thanks a lot. How do you calculate the adjusted net income, what is the figure based on the above? I keep savings in NSI premium bonds and invest in stocks & shares ISA so there is no taxable interest really. 

So basically as long as I keep that adj net income amount to < £50,100 (by contributing extra to pension) I won't be liable for this tax charge. And if it gets to >£60K then child benefit is payable back? 

Dazed_and_C0nfused

ANI less than £50,100 nothing to pay back.

ANI £50,100 to £59,900 and some paid back on a sliding scale.

ANI £60k or more and it all has to be paid back.

You have probably covered everything relevant in your op

https://www.gov.uk/guidance/adjusted-net-income