Child Benefit - Working out adjustable pay

bucko77

I've gone above the £50k salary mark (56k for 21/22) so have to register for self assessment for my child benefit for this year.
Looking at the detail I can take off my pension contributions to reach the adjustable pay that Child Benefit is worked out from. I'm in my employers post tax pension scheme and contributed £4645 in the year - presume I can gross this up to £5807?). This leaves me slightly over the £50k mark when deducted so I have to go into the self assessment form. When I fill in this on the self assessment form there is a box for "payments to employer’s scheme which were not deducted from customers pay before tax". - I presume I put it in there? I also put my tax (approx £9700) in as well with my P60 amount. 
When I press calculate it suddenly gives me a tax rebate of over £2k - this doesn't sound right to me - Am I doing this correctly?! 

[Deleted User]

You have paid higher rate tax on your salary and, by virtue of the pension contribution, you are not now liable to higher rate. 5730 has been charged at 40% which will now be liable at 20% on a code of 1257L- I make that a refund of £1146. (Higher rate tax is payable above 50270).

However the tax due on £56000 on a code of 1257L is £9832 - is your code 1257L?

We need to be certain what type of pension scheme that you contribute to.

bucko77

Thanks - Tax code for 21/22 was 1288L. I pay into a company Aegon scheme (a defined contribution pension scheme. I contribute my bit as mentioned £4645 grossed to the £5807 and company pay in their 7.5%) - this is post tax.
The options on the self assessment form were Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source) or is it the Payments to your employer's scheme which were not deducted from your pay before tax?

Dazed_and_C0nfused

bucko77 said:

Thanks - Tax code for 21/22 was 1288L. I pay into a company Aegon scheme (a defined contribution pension scheme. I contribute my bit as mentioned £4645 grossed to the £5807 and company pay in their 7.5%) - this is post tax.
The options on the self assessment form were Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source) or is it the Payments to your employer's scheme which were not deducted from your pay before tax?

That is a relief at source contribution so you want this option on your tax return

Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source)

The other option is mainly relavnat to public sector employees who make large one off contributions to DB schemes which can't be dealt with the net pay method.

RAS pension contributions are the gift that keeps on giving.

You get 25% added to your contribution in the form of tax relief (20% of the gross contribution).

And the gross contribution increases you're basic rate band so you can pay more 20% tax and less 40%.

And the gross contribution reduces your adjusted net income, which is used to calculate the High Income Child Benefit Charge.

If you had enough children and earned enough HMRC would actually pay you to contribute to your pension!

[Deleted User]

Can op provide more details of the tax calculation- can’t see how £2000 refund ensues?

bucko77

Thanks both - By moving it into that box it gives me a rebate of £1005.20 which concurs with the above. I didn't think it would result in a rebate which was why I was sceptical as I was just reducing the charge for Child Benefit purposes!

[Deleted User]

bucko77 said:

Thanks both - By moving it into that box it gives me a rebate of £1005.20 which concurs with the above. I didn't think it would result in a rebate which was why I was sceptical as I was just reducing the charge for Child Benefit purposes!

Something along the lines of what I posted earlier. 

Presumably you have some expenses in order for your code to be 1288L and have entered these on your tax return. 

So the personal allowances that you have received amount to 12880. You have a basic rate band of 37700. This totals 50580. This is extended by your pension contribution of 5807 to make 56387. This is now the amount above which you pay higher rate tax. 

However you have paid higher rate tax as the 50580 was not extended. Consequently, on 56000, you paid 5420 at 40%, not 20%. 20% of 5420 is £1084. Perhaps not exactly £56000 or a difference in the expenses entered from those included in your code number?

Dazed_and_C0nfused

I suspect the 1288L is PA £12,570 + WFH £312

[Deleted User]

Dazed_and_C0nfused said:

I suspect the 1288L is PA £12,570 + WFH £312

Indeed - hopefully entered on the tax return!