Self Assesment Help

Deano37

Hi everyone i have seen similar topics but thought be easier to explain if i start my own, this year i startered doing call out at work so i get my basic pay plus call outs and obviously that changes every single month, i am currently on track to earn over 50k and i am aware i will have to pay some of my child benefit back.

I am confused as to when should i register for self assesment and when will this need filled in ? (after april 6th ?)

also do i add april 2024 into this as payed on 1st but not include april 2023 ?

any help appreciated
thanks dean

Alice_Holt

It's the Net Adjusted Income that counts for CB, that's after deduction of pension contributions. 

https://community.hmrc.gov.uk/customerforums/sa/c644df82-eb64-ed11-97b2-00155d3ba57b


Does that still take you above £50k for the 2023/24 Tax Year?

Deano37

Alice_Holt said:

It's the Net Adjusted Income that counts for CB, that's after deduction of pension contributions. 

https://community.hmrc.gov.uk/customerforums/sa/c644df82-eb64-ed11-97b2-00155d3ba57b


Does that still take you above £50k for the 2023/24 Tax Year?

thanks for advice ,on that forum listed it seems to be amount before any deduction, my pay will be over 50k  before any deductions at all then it says deduction and pas PAYE , nat ins and pension, sorry for questions just seems very unclear at the moment,

thanks dean

Alice_Holt

 Adjusted net income is total taxable income before any Personal Allowances and less certain tax reliefs, for example:

• trading losses
• donations made to charities through Gift Aid - take off the ‘grossed-up’ amount
• pension contributions paid gross (before tax relief)
• pension contributions where your pension provider has already given you tax relief at the basic rate - take off the ‘grossed-up’ amount
  
  
  In very simple terms - Gross pay less Gross pension contributions.

Deano37

i will get it worked out later this week and see how i stand but think will still be slightly over to be honest as pension only usually hundred and something pounds then work adds couple of hundred. if it is over is there any other way to save paying back like putting what i am over into a sipp ?

will i still need to fill in self assesment and what date ? should i do this after the current tax year finishes ?

thanks Dean

BoGoF

There is no rush if it's 23/24 tax year you might go over £50k - you will have until January 2025 to self assess. Just wait till you get your 2023/24 P60 and if you have any taxable benefits your P11d. These will contain the figures you need to start with

xylophone

Are you able to make additional pension contributions?

 Suppose a a man  has a taxable income of £58,000 and his wife has no income. They have two children and receive   Child Benefit of £2,074.80 a year, [(£24.00 + £15.90) x 52].

Since income is £8,000 over the limit, he'll face a tax charge of 80% of £2,074.80 = £1,659.84.

 Therefore the value to them of the Child Benefit has been reduced to £414.96 (£2,074.80- £1,659.84).

If  the husband makes net pension contributions totalling £6,400 in the tax year to a pension plan offering relief at source, this will be grossed up to £8,000. This means his adjusted net income falls to £50,000 and no charge is payable.

By contributing £6,400, he's saved £1,659.84. If all of the pension contribution lies in the higher rate tax band, he'll also be able to claim an additional £1,600 in tax relief (20% of £8,000) through from HMRC. So, his £8,000 pension contribution has in fact cost him £3,140.16 (£6,400 - £1,659.84 - £1,600).   

Deano37

thanks for that explanation that really helped, only trouble is i wont know exactly how much i am over the threshold until end of tax year and by then i am in next year for my pension contributions. i have some pension questions i am going to ask in another thread as may close my old work place pension and put into a sipp.

also read that the higher income child benefit is changine to 60k 24/25 but i imagine that if i am over this tax year i will still have to pay it back ?
thanks again
dean

[Deleted User]

Deano37 said:

thanks for that explanation that really helped, only trouble is i wont know exactly how much i am over the threshold until end of tax year and by then i am in next year for my pension contributions. i have some pension questions i am going to ask in another thread as may close my old work place pension and put into a sipp.

also read that the higher income child benefit is changine to 60k 24/25 but i imagine that if i am over this tax year i will still have to pay it back ?
thanks again
dean

You should get your final payslip a few days before the end of March and the tax year doesn’t start until 6th April. You have a bit of time to make those contributions albeit that most places will be closed 1st and 2nd April.

Deano37

Hi again,  got my P60 and came in at £51223.18 My workplace pension comes out before tax, so I am £1223.18 over , I think I either have to repay some child benefit or can I pay some into a Sipp from 23/24 tax year after it has passed?

If I don't fill in self assesment will the government get in touch to say i owe money back , i am sure if i dont do it i will receive a fine.

also should be fine for 24/25 tax year as i am sure it has raised to 60k

thanks Dean

Dazed_and_C0nfused

Deano37 said:

Hi again,  got my P60 and came in at £51223.18 My workplace pension comes out before tax, so I am £1223.18 over , I think I either have to repay some child benefit or can I pay some into a Sipp from 23/24 tax year after it has passed?

If I don't fill in self assesment will the government get in touch to say i owe money back , i am sure if i dont do it i will receive a fine.

also should be fine for 24/25 tax year as i am sure it has raised to 60k

thanks Dean

No, you cannot make retrospective pension contributions.

You need to register for Self Assessment and complete a tax return.

The only time HMRC will contact you is if you don't do that then when they realise you are liable they will go down the penalty route.

So being proactive will save you money in the long term.