Child benefit/sacrifice help

Rainbow8585

Hi 

please can someone help me work out what amount I would need to sacrifice to my pension if salary was £70000 to keep below the £50,999 limit for receiving child benefit? 

thank  you 

Dazed_and_C0nfused

Rainbow8585 said:

Hi 

please can someone help me work out what amount I would need to sacrifice to my pension if salary was £70000 to keep below the £50,999 limit for receiving child benefit? 

thank  you 

Is this a trick question?

It's actually £50,099 and sacrificing £19,901 would reduce your taxable income to £50,099.

But HICBC is based on adjusted net income, not just earnings so interest and dividends have to be considered even if they are taxed at 0%.  Along with any other taxable income you might have.

Rainbow8585

No, I’m confused if it’s that simple or I was missing something with gross abouts of the tax back. Thank you

Dazed_and_C0nfused

Rainbow8585 said:

No, I’m confused if it’s that simple or I was missing something with gross abouts of the tax back. Thank you

There is no pending tax relief with salary sacrifice.

You give up salary in return for additional employer contributions. 

The tax (and NI) saving comes from not having the income to be taxed in the first place.