Child Benefit 2025

UnsureChap

I stopped child Benefit a few years ago, due the £50k limit. I was thinking about reapplying given the new threshold. I earn approx £64k I contribute 5% In my pension (approx £3168) and AVC of 6% approx £3800, which equates to approx £56,380 . my question is if I do reapply, do I need to pay any money back to HRMC in the self assessment? Sorry to sound really dumb.

Dazed_and_C0nfused

UnsureChap said:

I stopped child Benefit a few years ago, due the £50k limit. I was thinking about reapplying given the new threshold. I earn approx £64k I contribute 5% In my pension (approx £3168) and AVC of 6% approx £3800, which equates to approx £56,380 . my question is if I do reapply, do I need to pay any money back to HRMC in the self assessment? Sorry to sound really dumb.

Yes, that is the only way to pay HICBC at the moment.

UnsureChap

Thanks, I suppose what I am asking is that with my pension contributions, it takes me under the 60k threshold and therefore no tax charge 

Dazed_and_C0nfused

UnsureChap said:

Thanks, I suppose what I am asking is that with my pension contributions, it takes me under the 60k threshold and therefore no tax charge 

If you ar not liable to HICBC and HMRC haven't issued you with a return and you don't meet any other Self Assessment criteria then you don't need to complete a return just because your salary was above £60k.

If you make those pension contributions via the net pay method i.e. your P60 will show £56k, not £64k then all you need to make sure really is that you don't have £4k or more of other taxable income.

Ljc80_2

If you make those pension contributions via the net pay method i.e. your P60 will show £56k, not £64k then all you need to make sure really is that you don't have £4k or more of other taxable income.

Hi can i ask a question relating to this. I earned 65k last year (ending April24). I also pay into a work pension which i think came to approx 2.5k for that year. I was told by work that this comes off before Tax, but my P60 showed £65k rather than £62.5k.

If i was to apply for Child benefit would i be able to work on 62.5k for the HICBC as obviously it would reduce the amount i have to pay back?

Dazed_and_C0nfused

Ljc80_2 said:

If you make those pension contributions via the net pay method i.e. your P60 will show £56k, not £64k then all you need to make sure really is that you don't have £4k or more of other taxable income.

Hi can i ask a question relating to this. I earned 65k last year (ending April24). I also pay into a work pension which i think came to approx 2.5k for that year. I was told by work that this comes off before Tax, but my P60 showed £65k rather than £62.5k.

If i was to apply for Child benefit would i be able to work on 62.5k for the HICBC as obviously it would reduce the amount i have to pay back?

You need to understand the method used to make your pension contributions.

It could be relief at source, which means £2.5k might actually be £3,125 gross in your pension fund.

Ljc80_2

Is there any way I can tell that from looking at a payslip or P60?

Dazed_and_C0nfused

Ljc80_2 said:

Is there any way I can tell that from looking at a payslip or P60?

The best way is to look at your pension account and see if basic rate relief is being added (this is 25% of what you contribute).

If it isn't then they could be net pay contributions, that's where your salary is say £65k and you pay £5k into the pension so your P60 shows taxable earnings as £60k.

Ljc80_2

Thanks I had a look on the pension website but wasn't really clear. I didn't see anything about tax relief being added.

My P60 shows £65k as taxable earning, but I was told the pension comes off before tax so i thought that amount should be less.