How to calculate 'adjusted net income' for child benefit?

hieveryone

Hi,

I'm getting myself very confused over adjusted net income and the helpline, well.. isn't so much a helpline!! 

Let's say for ease, the salary is £80,000. 

Car on salary sacrifice scheme is £850 a month. On the P11D is says 'amount paid by employee for use of car' - £10,500. 

Pension contributions are 7.5%

 Medical insurance is £50 a month. 


Does this take us under the threshold for child benefit? 

Thank you 

daveyjp

HMRC self assessment tax system via the Government Gateway will calculate it for you.

hieveryone

daveyjp said:

HMRC self assessment tax system via the Government Gateway will calculate it for you.

Thank you - I don’t currently claim so this is more a forward look to see if it would be worth our while 🙈

Isthisforreal99

You need to establish what method of tax relief you get on your pension contributions - salary sacrifice, net pay or relief at source?

What is the taxable benefit of the car? Not convinced your employer is correct to say you paid £10,500 for use of the car.

Do you have any savings income such as interest, dividends?

hieveryone

Isthisforreal99 said:

You need to establish what method of tax
relief you get on your pension contributions - salary sacrifice, net pay or relief at source?

What is the taxable benefit of the car? Not convinced your employer is correct to say you paid £10,500 for use of the car.

Do you have any savings income such as interest, dividends?

Pension and car both salary sacrifice. 

Pension is paid in the ‘income’ column and I think employer pays at their end? 

Car is shown in the deduction column. 

I think the £10,500 is for the year? 

sheramber

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

hieveryone

sheramber said:

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

Not that I can see anywhere on the P11D? 

Isthisforreal99

hieveryone said:

sheramber said:

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

Not that I can see anywhere on the P11D? 

I think your employer has mucked up the P11D. What is the £10,500 in relation to - hopefully not the amount of salary sacrifice to actually get the car?

hieveryone

Isthisforreal99 said:

hieveryone said:

sheramber said:

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

Not that I can see anywhere on the P11D? 

I think your employer has mucked up the P11D. What is the £10,500 in relation to - hopefully not the amount of salary sacrifice to actually get the car?

Interesting. 

This is a cropped image of the part it details the £10,500.

hieveryone

hieveryone said:

Isthisforreal99 said:

hieveryone said:

sheramber said:

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

Not that I can see anywhere on the P11D? 

I think your employer has mucked up the P11D. What is the £10,500 in relation to - hopefully not the amount of salary sacrifice to actually get the car?

Interesting. 

This is a cropped image of the part it details the £10,500.

I think this is the yearly cost of the car. We pay £878.83 in salary sacrifice each month which multiplied by 12 is the £10,545.

sheramber

hieveryone said:

sheramber said:

You will have a benefit in kind charge added to your income. 

Is there an amount shown in your code number for BIK? 

Not that I can see anywhere on the P11D? 

Is there an amount against BiK  in your code number?