High Income Child Benefit Charge - calculations

FungasUK

Hi all, sorry if this has been asked (I did search but couldn't find the answer)....
I'm trying to calculate any payback needed for my child benefit, as my income is over £50k. Factors roughly are:
Salary = £52400
I pay around 11% of salary in pension contributions
I pay £80 per month in AVC
I get a taxable BIK valued at £1864 p.a.
I make my adjusted pay £47440 - does that sound right? (I've tried using the government calculator but it states something about net pension contributions being calculated, not pre-tax contributions....?!).
thanks.

peteuk

11% salary in pension contributions is that deduced through your wage as part of an employer scheme or a voluntary additional pension?  If its an employee's scheme then it wont count as a tax deductible. 

Yamor

FungasUK said:

Hi all, sorry if this has been asked (I did search but couldn't find the answer)....
I'm trying to calculate any payback needed for my child benefit, as my income is over £50k. Factors roughly are:
Salary = £52400
I pay around 11% of salary in pension contributions
I pay £80 per month in AVC
I get a taxable BIK valued at £1864 p.a.
I make my adjusted pay £47440 - does that sound right? (I've tried using the government calculator but it states something about net pension contributions being calculated, not pre-tax contributions....?!).
thanks.

Sounds about right, assuming your pension contributions are to a scheme using net pay arrangements. I actually got to £47,540.

If the pension contributions are to a scheme using relief at source arrangements, then it would be even lower - around £45,859.

Yamor

peteuk said:

11% salary in pension contributions is that deduced through your wage as part of an employer scheme or a voluntary additional pension?  If its an employee's scheme then it wont count as a tax deductible. 

For the HICBC, it would count.

Dazed_and_C0nfused

Yamor said:

peteuk said:

11% salary in pension contributions is that deduced through your wage as part of an employer scheme or a voluntary additional pension?  If its an employee's scheme then it wont count as a tax deductible. 

For the HICBC, it would count.

That all depends on what the op is referring to as "salary".

I only consider RAS contributions deductable as net pay (and salary sacrifice) are already deducted prior to taxable income being reported and the starting point for ANI is taxable income.

Yamor

Dazed_and_C0nfused said:

Yamor said:

peteuk said:

11% salary in pension contributions is that deduced through your wage as part of an employer scheme or a voluntary additional pension?  If its an employee's scheme then it wont count as a tax deductible. 

For the HICBC, it would count.

That all depends on what the op is referring to as "salary".

I only consider RAS contributions deductable as net pay (and salary sacrifice) are already deducted prior to taxable income being reported and the starting point for ANI is taxable income.

True.

But from the context of the OP's post, I thought it was clear they mean that the 11% pension contribution is taken out of the salary figure from the line above. And that is how it would look on a payslip too.