Help me work out cb tax..

kezzygirl

Hi all, I earned too much last year and have to pay the child benefit tax. I do not yet have my p60, but I have March's payslip detailing my total wages for the year. It asks for net income, I may be being dim, but I'm struggling with what to include. 

My pension comes out before tax. 
I have a small reduction in my tax on account of professional fees to nmc. 
Do my student loan payments get deducted from income? 
Would my employers contribution to my pension be included also? (Doubtful, I know). 

Wanting to submit the tax thing sooner rather than later. Thanks-please don't just post the hmrc guidance, I've been looking at that and I'm not sure I'm working it out right.

Dazed_and_C0nfused

I think you've misunderstood what (adjusted) net income is, it's nothing to do with your net take home pay.

For most people it is simply all taxable income, even things like interest which might be taxed at 0%.

And you can then deduct one type of pension contribution, those made using the relief at source method.

It sounds like your pension uses either the net pay or salary sacrifice method so you cannot deduct those contributions.  But your P60 will reflect the reduced taxable income they result in.

Does your March payslip clearly show your taxable pay?

Do you have any other taxable income?

kezzygirl

Dazed_and_C0nfused said:

I think you've misunderstood what (adjusted) net income is, it's nothing to do with your net take home pay.

For most people it is simply all taxable income, even things like interest which might be taxed at 0%.

And you can then deduct one type of pension contribution, those made using the relief at source method.

It sounds like your pension uses either the net pay or salary sacrifice method so you cannot deduct those contributions.  But your P60 will reflect the reduced taxable income they result in.

Does your March payslip clearly show your taxable pay?

Do you have any other taxable income?

My taxable pay was 58,180. Gross was 63,720. I think the difference between the two was the amount of pension paid. I have about 1500 other income from bank work

Dazed_and_C0nfused

kezzygirl said:

Dazed_and_C0nfused said:

I think you've misunderstood what (adjusted) net income is, it's nothing to do with your net take home pay.

For most people it is simply all taxable income, even things like interest which might be taxed at 0%.

And you can then deduct one type of pension contribution, those made using the relief at source method.

It sounds like your pension uses either the net pay or salary sacrifice method so you cannot deduct those contributions.  But your P60 will reflect the reduced taxable income they result in.

Does your March payslip clearly show your taxable pay?

Do you have any other taxable income?

My taxable pay was 58,180. Gross was 63,720. I think the difference between the two was the amount of pension paid. I have about 1500 other income from bank work

In that case unless you have made separate contributions to a personal pension (or Gift Aid donations) then I would be expecting to have to pay back 96% of the Child Benefit.

58180 + 1500 = 59680

If you also had say £20 of interest then that would nudge up to 97%.

kezzygirl

So for my return, I would put the taxable pay figure for both jobs?

Ferro

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes - declare two employments and enter the taxable pay and tax deducted for each. 

Dazed_and_C0nfused

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes, you declare all taxable income on a Self Assessment return.

You would do this by completing two employment pages, one for each job.

Also, if you are NHS staff do you have any job related expenses that might help reduce the High Income Child Benefit Charge?


I have about 1500 other income from bank work

kezzygirl

Dazed_and_C0nfused said:

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes, you declare all taxable income on a Self Assessment return.

You would do this by completing two employment pages, one for each job.

Also, if you are NHS staff do you have any job related expenses that might help reduce the High Income Child Benefit Charge?


I have about 1500 other income from bank work

I have a tax reduction for my nmc fees, uniform fee and subscription fees too

Dazed_and_C0nfused

kezzygirl said:

Dazed_and_C0nfused said:

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes, you declare all taxable income on a Self Assessment return.

You would do this by completing two employment pages, one for each job.

Also, if you are NHS staff do you have any job related expenses that might help reduce the High Income Child Benefit Charge?


I have about 1500 other income from bank work

I have a tax reduction for my nmc fees, uniform fee and subscription fees too

You should include those on your Self Assessment return as well (assuming they are relevant to the 2023-24 tax year).

They could drop the HICBC slightly, every little helps 😉

kezzygirl

Dazed_and_C0nfused said:

kezzygirl said:

Dazed_and_C0nfused said:

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes, you declare all taxable income on a Self Assessment return.

You would do this by completing two employment pages, one for each job.

Also, if you are NHS staff do you have any job related expenses that might help reduce the High Income Child Benefit Charge?


I have about 1500 other income from bank work

I have a tax reduction for my nmc fees, uniform fee and subscription fees too

You should include those on your Self Assessment return as well (assuming they are relevant to the 2023-24 tax year).

They could drop the HICBC slightly, every little helps 😉

Yes they're applicable. Thanks for your help!! Should I not wait til my p60 then? As my payslip from March states taxable pay for the year? 

Dazed_and_C0nfused

kezzygirl said:

Dazed_and_C0nfused said:

kezzygirl said:

Dazed_and_C0nfused said:

kezzygirl said:

So for my return, I would put the taxable pay figure for both jobs?

Yes, you declare all taxable income on a Self Assessment return.

You would do this by completing two employment pages, one for each job.

Also, if you are NHS staff do you have any job related expenses that might help reduce the High Income Child Benefit Charge?


I have about 1500 other income from bank work

I have a tax reduction for my nmc fees, uniform fee and subscription fees too

You should include those on your Self Assessment return as well (assuming they are relevant to the 2023-24 tax year).

They could drop the HICBC slightly, every little helps 😉

Yes they're applicable. Thanks for your help!! Should I not wait til my p60 then? As my payslip from March states taxable pay for the year? 

There is no mad rush.

As someone who is (still?) employed the key date is 30 December 2024.  If you file the return by then and owe less than £3,000 you will be able to put off paying the Self Assessment liability and have it collected via your 2025-26 tax code.

Not everyone likes this, they prefer to pay direct (payment would be due by 31 January 2025) and avoid their tax code being messed with.

There is a question near the end of the return which asks your preference for how to pay, make sure you read that and answer it whichever suits you best.

And presumably you are aware the lower threshold for HICBC increased to £60,200 from this April so future years charge should be a lot less.  Unless the NHS get a huge pay rise this year!