Child Benefit Charge

cossie1990

Hi all,

Apologies if this has been done to death but I can't seem to find an answer.

My salary has only recently increased to £52k p/a - I don't think between now and the end of the tax year I will have gone over the £50k threshold, I obviously will do next year.

Am I right in thinking that I will have to complete a self assessment and pay a charge by January 2024 for the 22/23 tax year? Also, is it based on gross pay on taxable pay? With my pension contributions it lowers the figure below the £50k threshold.

Thanks,
Darren.

Dazed_and_C0nfused

Neither, it's based on adjusted net income (gov.uk has a detailed explanation of this).

Some pension contributions can be deducted others can't (as they are already taken into account in arriving at your P60 taxable pay amount).

YBR

Adjusted Net income also takes into account Gift-aided charitable donations. This makes a fair difference for me but I have been asked to prove it one year.

cossie1990

Thanks for your replies.

Am I right in thinking essentially then it's total gross pay before any allowance less pension contributions - my pension is a workplace pension so I'm assuming this figure will be on my P60.

Say for instance my adjusted net income was £55k could I reduce this by paying £5k into another pension and/or gift aiding rather than take the charge? Would I still have to complete a return?