Very confused over High Income Child Benefit Charge

daveyjp

https://www.gov.uk/self-assessment-tax-returns

Self assessment isn't difficult, it just looks overwhelming and needs some time to take in and complete the details.

Once you have a Government gateway, which is worth having anyway tontrack other tax matters such as your NI payments and state pension forecast etc. a self assessment will take minutes if you have your P60 and no income from other sources such as savings interest, stocks and shares, company directorships etc.

sky_rat

Do I need to subtract my pension from my gross salary ?

The Child Benefit tax calculator states the following:

I pay £183.45 a month for my pension.

So do I enter 12 months of pension i.e. £183.45 x 12 = £2201.40 ?

The website states "It is very important that you enter the correct amount in the appropriate box on the return. Errors or mistakes can lead to you being asked to pay the wrong amount of tax, and can take time to correct"

So I need to be sure I've got the information and figures right...

Dazed_and_C0nfused

Do I need to subtract my pension from my gross salary ?

You can only deduct relief at source (RAS) pension contributions so if all depends on whether this is the method your pension is paid under.

The three normal methods of getting money into a pension are net pay, relief at source and salary sacrifice.

Relief at source is the only one where the pension company adds 25% to your contribution and this will show up in your pension account. 

Is this the method your scheme uses?

sky_rat

Dazed_and_C0nfused said:

Do I need to subtract my pension from my gross salary ?

You can only deduct relief at source (RAS) pension contributions so if all depends on whether this is the method your pension is paid under.

The three normal methods of getting money into a pension are net pay, relief at source and salary sacrifice.

Relief at source is the only one where the pension company adds 25% to your contribution and this will show up in your pension account. 

Is this the method your scheme uses?

I have no idea, my employer handles it all. How can I find out?

I did notice it said salary sacrifice on one of my pay slips which is next to the figure £183.45. My payslips have changed format earlier this year 

So if it is salary sacrifice, what amount do I put in the box?

Dazed_and_C0nfused

sky_rat said:

Dazed_and_C0nfused said:

Do I need to subtract my pension from my gross salary ?

You can only deduct relief at source (RAS) pension contributions so if all depends on whether this is the method your pension is paid under.

The three normal methods of getting money into a pension are net pay, relief at source and salary sacrifice.

Relief at source is the only one where the pension company adds 25% to your contribution and this will show up in your pension account. 

Is this the method your scheme uses?

I have no idea, my employer handles it all. How can I find out?

I did notice it said salary sacrifice on one of my pay slips which is next to the figure £183.45. My payslips have changed format earlier this year 

So if it is salary sacrifice, what amount do I put in the box?

£0.

Salary sacrifice means you aren't contributing to a pension, you are agreeing to a reduced salary in return for additional employer pension contributions and you cannot deduct employer contributions.

Say your salary was £60k and you sacrificed 10% into a pension then your taxable income would only be £54k so if you deducted them they would be double counted.