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50k+ Child Benefit Clarification
Ihatepickingusernames
Posts: 1
Newbie
Hi all,
I'm struggling to find an explanation on how I define my adjusted net income in relation to Bonuses.
If my salary is circ 47,500, plus private medical insurance of circa 580 which leaves me under the 50k.
However, a bonus may come this year although is not guaranteed, if it does, and this takes me over 50k would I need to contact hmrc to advise them?
Because I won't know until April each year if a bonus is payable do I now neee to calculate this each year and advise hmrc accordingly?
My confusion was around a bonus payment being classed as part of the adjusted net income.
Many thanks in advance
I'm struggling to find an explanation on how I define my adjusted net income in relation to Bonuses.
If my salary is circ 47,500, plus private medical insurance of circa 580 which leaves me under the 50k.
However, a bonus may come this year although is not guaranteed, if it does, and this takes me over 50k would I need to contact hmrc to advise them?
Because I won't know until April each year if a bonus is payable do I now neee to calculate this each year and advise hmrc accordingly?
My confusion was around a bonus payment being classed as part of the adjusted net income.
Many thanks in advance
0
Comments
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When, exactly, will the bonus show on your payslip and be received?Ihatepickingusernames said:Hi all,
I'm struggling to find an explanation on how I define my adjusted net income in relation to Bonuses.
If my salary is circ 47,500, plus private medical insurance of circa 580 which leaves me under the 50k.
However, a bonus may come this year although is not guaranteed, if it does, and this takes me over 50k would I need to contact hmrc to advise them?
Because I won't know until April each year if a bonus is payable do I now neee to calculate this each year and advise hmrc accordingly?
My confusion was around a bonus payment being classed as part of the adjusted net income.
Many thanks in advance
You say you won't know until April and this makes a difference to which tax year the bonus is considered for. If the bonus is next tax year, you will have the whole year to plan appropriately. If the bonus is this tax year, you may only have a few days.
The first "go to" action to reduce ANI is usually extra pension contribution.1
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