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Pay Rise - Child Benefit Repayments
g0009348
Posts: 113 Forumite
in Cutting tax
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?
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?
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Comments
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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
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