Child Benefit Charge

bell24

I am currently looking at having to pay child benefit charge and looking for some advice on the allowable deductions. I make personal pension contributions which I am currently deducting from my income which will in turn reduce my charge.

My question is that I currently pay into a pension for both my children (aged 6 and 11). As I make these payments, are these an allowable deduction? I am the named parent on their pensions.

Any assistance would be appreciated.

68ComebackSpecial

Short answer is no. It would be advisable to post on the Cutting Tax board as they would be better placed to advise you as to what comprises your adjusted net income - the figure which will determine whether you are liable to repay all/ a portion of the child benefit.

Dazed_and_C0nfused

Just to clarify, pension contributions made using the "relief at source" method i.e. to a SIPP or personal pension scheme reduce your adjusted net income, which is used to calculate the HICBC, but they don't reduce your taxable income.

They do however increase your basic rate tax band.