Pay Rise - Child Benefit Repayments

g0009348

Hello,

I've just received a pay rise, taking my gross salary to £62k.  I pay into my company pension through Salary Sacrifice.

This means I need to repay all child benefit, which my wife receive into her account.

Am I correct in thinking, to be as tax efficient a possible, I need to salary sacrifice a further £12k to my pension, bringing adjustable net income below £50k, to avoid the additional tax payments?

guiriman

You need to reduce your gross income to below £50,100 so effectively a £11,901 reduction (assuming the £62k mentioned is after your existing pension contribution). Charitable contributions that Gift Aid is claimed on also reduce this so every 80p that you gift aid counts as a quid against that. Any p11d work benefits will add to the amount you have to sacrifice