Child Benefit Charge

bell24

I am currently 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 personal pension for both my children (aged 6 and 11). As I make these payments since they are still children, are these an allowable deduction and can I use these to reduce my child benefit charge? I am the named parent on their pension accounts.

Any assistance would be appreciated.

[Deleted User]

They are not an allowable deduction from your adjusted net income.

Jeremy535897

purdyoaten2 said:

They are not an allowable deduction from your adjusted net income.

That is correct, because your children are deemed to make the payments, even though you actually do, so they can't reduce your higher rate tax liability either. See: https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-relief-and-contributions

"If you pay into someone else’s pension scheme (for example, your partner’s or children’s pension schemes), your contribution is treated as paid as net of basic rate income tax.

The pension provider claims back basic rate tax at 20% from HMRC and adds this to the pot that you have paid into. You can’t claim any tax relief yourself on your contribution, as it’s treated as if it had been paid by the member as the pension provider will claim basic rate income tax relief on the member’s behalf. The member, even though they have not paid the contribution, can claim any higher rate tax relief if they’re a higher rate tax payer."