Making pension contributions to reduce High Income Child Benefit Charge

TheAble

I make it you'd need to pay in about £4800 of cash to gross it up to £6000. Does that tally with what you had?

Biketrials08

r6mile said:

I have been looking at mine and my wife’s income for the last few years, and very annoyingly I think I may have just missed out on being able to claim the marriage allowance in 2020/21. 

That year, my wife earned just over 10k. I earned £50055 after pension contributions. That year the higher rate threshold was 50k exactly. I made just £34 of gift aid-eligible charity contributions. Nothing I can do is there? So frustrating to miss out on a £250 rebate because my income was only a few quid too high! You live and learn…

Don't give up until you've called the tax office, there can sometimes be ways round these things, I've had some good results even when I thought I was out of time. Nothing to lose in trying. 

[Deleted User]

Biketrials08 said:

r6mile said:

I have been looking at mine and my wife’s income for the last few years, and very annoyingly I think I may have just missed out on being able to claim the marriage allowance in 2020/21. 

That year, my wife earned just over 10k. I earned £50055 after pension contributions. That year the higher rate threshold was 50k exactly. I made just £34 of gift aid-eligible charity contributions. Nothing I can do is there? So frustrating to miss out on a £250 rebate because my income was only a few quid too high! You live and learn…

Don't give up until you've called the tax office, there can sometimes be ways round these things, I've had some good results even when I thought I was out of time. Nothing to lose in trying. 

How can there be a ‘way round’ a statement of fact. Gift aid payments made now can have no effect on 2020/21 tax liability. 

betty_l8_than_eva

I'm in a similar predicament, albeit with a higher salary (£75k). Already put £10.5k in my company pension (£13125 gross), so does that mean I just need to put away an additional £9.5k (£11875 gross) or thereabouts so I'm at £50,000 net adjusted income? Any help appreciated, thanks!

Jeremy535897

Broadly speaking. The cut off points are £50,270 for higher rate tax (unless in Scotland) and £50,100 for HICBC.

Dazed_and_C0nfused

betty_l8_than_eva said:

I'm in a similar predicament, albeit with a higher salary (£75k). Already put £10.5k in my company pension (£13125 gross), so does that mean I just need to put away an additional £9.5k (£11875 gross) or thereabouts so I'm at £50,000 net adjusted income? Any help appreciated, thanks!

Don't forget you have to include all taxable income, even if it's taxed at 0%.

So interest and dividends can add to your overall liability even if no tax is actually payable on them.