Higher Income Child Benefit Charge

ftg

I get my annual bonus each year in March. If next year I deferred it to April instead due to HICBC is that an issue with HMRC? Other than it being perhaps a bit immoral would there be any technical breach? I resent paying CB back given my children will hopefully be paying tax throughout their careers in the UK, anyway that's another story.

Dazed_and_C0nfused

ftg said:

I get my annual bonus each year in March. If next year I deferred it to April instead due to HICBC is that an issue with HMRC? Other than it being perhaps a bit immoral would there be any technical breach? I resent paying CB back given my children will hopefully be paying tax throughout their careers in the UK, anyway that's another story.

What does your employer have to say about your request to change the timing of the bonus and payroll implications?

Grumpy_chap

ftg said:

I get my annual bonus each year in March. If next year I deferred it to April instead due to HICBC is that an issue with HMRC? Other than it being perhaps a bit immoral would there be any technical breach? I resent paying CB back given my children will hopefully be paying tax throughout their careers in the UK, anyway that's another story.

I assume, with the bonus, your salary will exceed the £50k threshold so have HICBIC apply but next year, even if two bonus payments fall, will not exceed the £60k threshold, hence delaying the bonus is attractive for you.

Even if your employer is agreeable (they may not be), it may be too late for payroll to be revised.

As an alternative, would you be able to make extra pension contribution this month, so below the HICBIC taper?  

ftg

Dazed_and_C0nfused said:

ftg said:

I get my annual bonus each year in March. If next year I deferred it to April instead due to HICBC is that an issue with HMRC? Other than it being perhaps a bit immoral would there be any technical breach? I resent paying CB back given my children will hopefully be paying tax throughout their careers in the UK, anyway that's another story.

What does your employer have to say about your request to change the timing of the bonus and payroll implications?

I'm pretty sure my employer will be fine about it. It's a year away to be honest. If I get an annual bonus in March I will exceed the new higher limit, if I defer until April I will be under the limit for the taxable year. I realise it's probably immoral but it's no worse so than a rich person taking advantage of tax breaks where they can. I know that an ex boss of mine would move his bonus into April because of the pension allowance, similar principle but he did it consistently each year I worked for him. My situation would be the first time I deferred the bonus into the following month.