Calculating adjusted net income with BIK

traxuk

Hi all, for the first time I need to complete a self assessment to calculate the higher rate child benefit charge (HICBC) but having been PAYE all my life I am slightly confused about how to calculate adjusted net income (ANI).

My taxable income for the year (from salary + bonus & overtime) is £66415 but I also have a company car and private fuel and I am not sure if that has to be added on (£9499). I don't receive any income from any other source. I have a workplace pension that gets taken monthly from salary but do not pay into any additional pensions outside of work.

What would by ANI be?

eskbanker

There's a calculator you can use:

https://www.gov.uk/child-benefit-tax-calculator

and that page does clarify:

Adjusted net income includes taxable benefits you get from your job, like a company car or medical insurance.

KidJo

In this case it looks like your taxable income = net adjusted income = salary + bik 

The ANI would be lower than taxable income for things like relief at source pension contributions or charitable donations.

So as you are £15,914 over £60,000 you would have a HICBC of 79% (15,914/20,000) of whatever you received as child benefit.