Child Benefit Overpayment

Rflowe

Hello, just looking for some help regarding overpayment of child benefit this year. 
For the first time I have earned over the threshold and I haven't had to submit a self assessment before so I'm slightly clueless here. I've not been able to get through to HMRC yet so asking advice here instead!
This year I will have earned £59,000. Of that £4500 was accommodation/living allowance as I was working away from home. I've paid £950 into a nest pension through my workplace (I work paye on multiple short term contracts with different companies),
I received £2555 this year in child benefit. 
I believe I can pay into my nest pension in order to reduce my taxable income. How much would I have to pay in or is there a calculator somewhere online that will help with figuring it out? Rather than repay the £2555 I would rather top it up and increase my tiny pension
Thank you!

Dazed_and_C0nfused

Paying into your Nest pension won't reduce your taxable income.

Nest operate the relief at source method so if you pay in say £2,000 they add £500 in basic rate tax relief making a gross contribution of £2,500.  This has no impact on your taxable income.

But the High Income Child Benefit Charge is based on adjusted net income, not taxable income.  And relief at source pension contributions do reduce your adjusted net income.

In this situation they are very tax efficient as you get,

1. basic rate tax relief added to your pension fund

2. they increase your basic rate tax band meaning more income is taxed at 20% rather than 40% (if you earn enough) and

3.  They reduce your adjusted net income saving you paying back Child Benefit

You need to read up on adjusted net income and make sure you pay your extra pension contribution, whether its to Nest or another scheme, asap.  You can only ever get tax relief in the tax year your contribution is paid so if you leave it too long you will miss out for the the 2021:22 tax year.

Rflowe

Thank you for the reply! Will definitely get as much as I can afford into my pension before the end of the month