Child Benefit

redbook100

I stop getting child benefit after August, as my child goes into advance education. I have been putting additional amounts into my pension to reduce my adjusted income to just under £50k. Will my total earnings for this 2024-25 year still matter, as i will only get 5 months of child benefit i.e. if i exceed the £50k amounts? 

BoGoF

Yes, unless the threshold increases in the March budget

Treehoger1

Hope you don't mind me jumping into this thread, but didn't want to open a new one. If I claim Child benefit, and my salary will increase to over 50k, I will increase pension contributions to get net earrings below that figure, so that I don't loose Child Benefit - will I still have to do self assessment?

BoGoF

Treehoger1 said:

Hope you don't mind me jumping into this thread, but didn't want to open a new one. If I claim Child benefit, and my salary will increase to over 50k, I will increase pension contributions to get net earrings below that figure, so that I don't loose Child Benefit - will I still have to do self assessment?

Depends on the method of contribution. If salary sacrifice or net pay scheme that takes your taxable income (including employer benefits) under £50k then probably not. Any other method then probably yes.

Ginger_chap

I have just spoken to Government child benefit helpline (after 30min wait to get through) today as we wanted to adjust my wifes income downward to 60k (via additonal pension contributions) so as to qualify for full childcare benefit from April 6th. They said that AVC's to a workplace pension do not qualify to adjust the salary downwards. Salary sacrafice is irrelevent. It's only contributions to a private pension (outside your workplace pension) after you've paid tax that can be used for the salary adjustment (unless you work for Government or NHS which has a pension quirk). They pointed me to this calculator which states what qualifies. You have to use your gross salary before tax and not your salary after pension deductions (the part in brackets below in first bullet is the NHV/Gov staff I think).

https://www.gov.uk/child-benefit-tax-calculator

Child Benefit tax calculator

Enter your income details for the tax year

Add up your taxable income. This includes things like:

• your salary before tax (with pension contributions under net pay arrangements deducted)
• other employment income, for example bonuses
• taxable benefits provided by your employer, for example the value of medical insurance, a company car or anything else included on your P11D
• income from pensions before tax, for example from a state pension
• other income before tax, for example taxable profits from self-employment, taxable savings and dividends
• income from property before tax, for example taxable rental income and any taxable benefits provided by your employer such as medical insurance

Ginger_chap

redbook100 said:

I stop getting child benefit after August, as my child goes into advance education. I have been putting additional amounts into my pension to reduce my adjusted income to just under £50k. Will my total earnings for this 2024-25 year still matter, as i will only get 5 months of child benefit i.e. if i exceed the £50k amounts? 

Hi, Can I ask if you work for NHS of Governement? if not, that contradicts what advice I have just been given after phone call to the Government helpline. See my post above for more detail. They also told me that you only have to do a self assessment if your adjusted income is above the minimum threshold.

Ginger_chap

Treehoger1 said:

Hope you don't mind me jumping into this thread, but didn't want to open a new one. If I claim Child benefit, and my salary will increase to over 50k, I will increase pension contributions to get net earrings below that figure, so that I don't loose Child Benefit - will I still have to do self assessment?

See my post above. I believe this is incorrect (based on advice received today) unless you work for NHS or Government. You have to use your Gross salary and cant adjust income based on AVC's.