Self assessment and child benefit high income tax charge

soxford

If on paper my partner's salary is approx £51000, but on a 22-23 P60, the figure in the box under "pay and income tax" marked with an asterisk is below £50000, does this mean the high income CB charge and requirement to complete a self assessment does not apply?

 The P60 states "the figures marked * should be used for your tax return if you get one". Trying to figure out if a self assessment is needed or not. Never had to do this before. Does it go on your salary before pension, deductions etc or the figure marked * on the P60 for that tax year? Thank you

Dazed_and_C0nfused

soxford said:

If on paper my partner's salary is approx £51000, but on a 22-23 P60, the figure in the box under "pay and income tax" marked with an asterisk is below £50000, does this mean the high income CB charge and requirement to complete a self assessment does not apply?

 The P60 states "the figures marked * should be used for your tax return if you get one". Trying to figure out if a self assessment is needed or not. Never had to do this before. Does it go on your salary before pension, deductions etc or the figure marked * on the P60 for that tax year? Thank you

"Salary" is never a factor in HICBC.

You need to establish their adjusted net income.  If that is £50,100 or more then a Self Assessment return is required.

The taxable pay on a P60 is a good starting point.  This is often less than the salary as a result of net pay pension contributions.  Or because salary has been sacrificed for extra employer pension contributions.

Adjusted net income can be complicated but for most people it's simply adding up all taxable income.  This includes things like taxable interest and dividends, even if taxed at 0%, company benefits, employment income, rental income and profits from self employment.

And then deducting Gift Aid contributions and RAS (relief at source) pension contributions.  You cannot deduct net pay or salary sacrifice pension contributions.

soxford

Thanks - I'll be honest I do not understand much about 'adjusted net income', it sounds horribly complicated as a newbie to it all. We've not had to do much beyond claim CB eight years ago. Never claimed anything else, never self employed or in receipt of benefits, nothing. 

My salary is under the threshold. We have a joint bank account and joint savings, everything in one pot and out of one pot. No other income I can think of, just our jobs. Is it really as simple as stating taxable pay from P60 and if that's under threshold then nothing comes of it? Sorry I have no clue, I'm shaming myself!

Dazed_and_C0nfused

soxford said:

Thanks - I'll be honest I do not understand much about 'adjusted net income', it sounds horribly complicated as a newbie to it all. We've not had to do much beyond claim CB eight years ago. Never claimed anything else, never self employed or in receipt of benefits, nothing. 

My salary is under the threshold. We have a joint bank account and joint savings, everything in one pot and out of one pot. No other income I can think of, just our jobs. Is it really as simple as stating taxable pay from P60 and if that's under threshold then nothing comes of it? Sorry I have no clue, I'm shaming myself!

If the taxable income (for the higher earner) doesn't even reach £50,100 then you don't need to consider Gift Aid or pension contributions.

So if you added the taxable pay on the P60 and the taxable interest (half share of any joint accounts) then what would you get to? 
NB. You ignore interest from ISA's as that's tax exempt.

The above assumes there was only one employment in the tax year, if not you need to add in the taxable pay from any other employments where taxable income was received during the (tax) year.

daveyjp

You can do the self assessment anyway and it will do the calculations.  There is no need to submit it if its zero.

Dazed_and_C0nfused

Not really an option if you have never been in the Self Assessment system before though.