High Earner Child Benefit Tax

gooma01

Can anyone give advice on the high earner child benefit tax?  This policy has not been reviewed since 2012.  If one parent earns over £50,000 the government sanction the child benefit but if both parents earn £49,000 then they get full child benefit.  Seems completely rudicrous that families are been penalised for working some overtime and trying to make ends meet in the current financial crisis.

Does anyone know what total i look at on my cummulative wage slip?  Is it gross taxable pay?  Are the pension contributions taken off before the the government claw back money from my child benefit?   Makes me so angry.

sheramber

https://www.gov.uk/child-benefit-tax-charge

What counts as income

To work out if your income is over the threshold, you’ll need to work out your ‘adjusted net income’.

Your adjusted net income is your total taxable income before any allowances and not including things like Gift Aid. Your total taxable income includes interest from savings and dividends.

Use the Child Benefit tax calculator to get an estimate of your adjusted net income.