50k limit for child tax benefit.

consumers_revenge

Hi,

Wondering if anyone can help please?

So 1 child and getting £96 a month child benefit.

I'm currently under the 50k mark but am likely to be told will get a annual payrise pushing me up to 51k from end of Jan so believe I have to this self assessment form (I'm PAYE as an employee for work)

My mate has just done this and nearly lost his marbles trying to get sense out of the HMRC over the phone.

So I presume I'm paying 2023-2024 tax year but how does this work as really I'm only over 50k 3 months so surely shouldnt end up paying a whole year? I might not even get that payrise yet so no point filling in at his time but its likely.

I cant be on the end of Jan deadline as I'm not over the limit yet etc? presume wont even now this years p60 yet?

Thoughts or help please?

[Deleted User]

You need to calculate your adjusted net income! 

Are you in a pension scheme and how are your contributions paid?

consumers_revenge

Not sure how to do this as I said its only 3 months in the end of this tax year. The companies private medical insurance might even have made me over the 50k already?

I think they are salary sacrifice.

Dazed_and_C0nfused

consumers_revenge said:

Not sure how to do this as I said its only 3 months in the end of this tax year. The companies private medical insurance might even have made me over the 50k already?

I think they are salary sacrifice.

The three months part is completely irrelevant.  You need to look at your total taxable income to start with.  For example taxable pay at month 9 plus expected taxable pay in months 10, 11 & 12.

Your P60 will eventually show the relevant figure.

You cannot deduct salary sacrifice pension contributions as these are actually employer contributions (your P60 will reflect the reduced taxable income you have from agreeing to the salary sacrifice).

Don't forget to add in any other taxable income such as company benefits or savings interest (even the bit taxed at 0%).

consumers_revenge

so talk to them once I get me 23/24 P60?

consumers_revenge

the only other money money comes in from an ISA, which adds it monthly , do you need to declare this?

BoGoF

If you are liable to the HICBC for 23/24 you have until Jan 25 to complete it.....so chill until you have your P60 (and P11D if applicable)

sheramber

It is based on the annual figures regardless of when you go over the limit.

consumers_revenge

BoGoF said:

If you are liable to the HICBC for 23/24 you have until Jan 25 to complete it.....so chill until you have your P60 (and P11D if applicable)

wont even know my p60 for 23-24 until april/may 24. As at today Im under the 50k

consumers_revenge

Just been on the government gateway portal and it says my 23-24 taxable income is £46303. Is this something to do with pension self sacrifice?

TIA

Grumpy_chap

consumers_revenge said:

so talk to them once I get me 23/24 P60?

BoGoF said:

If you are liable to the HICBC for 23/24 you have until Jan 25 to complete it.....so chill until you have your P60 (and P11D if applicable)

By the time the OP receives the P60 it will be too late to take any action to reduce ANI, and retain CB for the year.

CB is £96 per month for the OP so £1,152 for the year.  
If the OP's salary (ANI) exceeds the £50k threshold, then CB reduces on a sliding scale.

Here is an example of working out ANI:
Base salary £51k
Add benefits (health care etc), say £2k ADD
Deduct pension contributions, say 5% of base salary, so £2.5k MINUS
Add savings interest, say £500  ADD
On those figures, ANI would be £51k
Increasing pension contributions by another £1k would ensure that all CB is retained.

The OP needs to go through that type of assessment for their actual figures and actual employment BIK (Benefit in Kind) benefits.
Is the £51k salary before or after the SS pension is deducted?

The good thing about CB is, if you go slightly over the £50k threshold, you still retain most of the CB as it is a sliding scale, not a cliff-edge.