Child Benefit Query (again)

TractorFactor

Apologies, I am still a bit confused on this.

If I earn £55,000 but pay £5001 into a pension that is taken before tax, do I have to pay the higher income child benefit charge?

Dazed_and_C0nfused

TractorFactor said:

Apologies, I am still a bit confused on this.

If I earn £55,000 but pay £5001 into a pension that is taken before tax, do I have to pay the higher income child benefit charge?

Assuming you mean net pay contributions then it depends what other taxable income you have.

For example (non ISA) interest of £700 might all be taxed at 0% but it would add £700 to your adjusted net income (which is what HICBC is based on).

TractorFactor

I purely want to focus on salary paid from a job and understand that rather than muddy the waters with other income at this time.

The £55,000 is gross (IE, I don't get £55,000 in my bank at the end of the year as a third is taxed/pensioned away) and the £5001 is taken before tax - it comes under the same coloumn that tells me the gross amount I get paid, along with overtime payments and anything else they're paying me (IE, not under deductions, which only has tax and NI contributions) but has a minus figure (to show they're taking it).

BoGoF

It will be whatever is shown on your P60 at year end which should be the total of your taxable pay as shown on your payslips. So if your monthly payslips shows gross pay of say £5,000 per month but only £4,500 is taxable after pension taken off then it's 12 x £4,500 (assuming it was the same every month).