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Child Benefit tax charge + pension contributions
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Welsh40
Posts: 2 Newbie

in Cutting tax
hey everyone
i am 40 something and earn 75k and have 2 kids, my partner is a low-ish earner.
Only got this pay this tax year and now liable for tax charge which i will pay.
Current set up
yearly pay £75k
pension contributions 7% = £5,250 - work contributions 14% £10,500
Take home £4191.89
Monthly child benefit £170.20 = £2403.40 yearly
will be liable to pay roughly £1200 via tax return
should i up my pension contributions to 20% (15k) which would be a hit of £500 per month but i'd keep the full £170.20 or am i being a wally concerning myself with it?
All comments welcome
i am 40 something and earn 75k and have 2 kids, my partner is a low-ish earner.
Only got this pay this tax year and now liable for tax charge which i will pay.
Current set up
yearly pay £75k
pension contributions 7% = £5,250 - work contributions 14% £10,500
Take home £4191.89
Monthly child benefit £170.20 = £2403.40 yearly
will be liable to pay roughly £1200 via tax return
should i up my pension contributions to 20% (15k) which would be a hit of £500 per month but i'd keep the full £170.20 or am i being a wally concerning myself with it?
All comments welcome
0
Comments
-
You seem to be overcomplicating things with the detail you have provided, employer pension contributions are completely irrelevant for example.
But when it comes to HICBC extra pension contributions can be very tax efficient.
How much you need to contribute to get the optimum benefit will depend on the method used to get the money into your pension.
The usual options are
Net pay
Relief at source
Salary sacrifice2 -
thanks for the comment0
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