Child benefit tax / pension withdrawl

Bandy2023

Apologies if this isn't the correct forum, but it is more of a tax question than a pension question.
I've had to withdraw money from my pension this month, I have paid tax on it.
However, the amount I've withdrawn combined with my salary will take me over the £60k limit for child benefit.
However, the child that we get benefit for will be leaving school this summer.
So, my question is, on my next tax return due in January 2027, am I able to specify I only went over the £60k from now until May/June?
I don't mind paying an amount of tax for me being over the threshold for this short period, it wouldn't be much.
But I will be annoyed if they class it as a 'whole year' of me being over the threshold.

molerat

It is all about the tax year as a whole. If you go over £60K in the tax year then you will have to make the relevant repayment, individual months or periods don't come into the equation.  But it is not a cliff edge, it is 1% deduction for each £200 over £60K and it is based on adjusted income, not simply £60K income, so there are ways of mitigating the charge.

sheramber

It is based on your adjusted net income for the year. 

https://www.gov.uk/guidance/adjusted-net-income

Dazed_and_C0nfused

Bandy2023 said:

Apologies if this isn't the correct forum, but it is more of a tax question than a pension question.
I've had to withdraw money from my pension this month, I have paid tax on it.
However, the amount I've withdrawn combined with my salary will take me over the £60k limit for child benefit.
However, the child that we get benefit for will be leaving school this summer.
So, my question is, on my next tax return due in January 2027, am I able to specify I only went over the £60k from now until May/June?
I don't mind paying an amount of tax for me being over the threshold for this short period, it wouldn't be much.
But I will be annoyed if they class it as a 'whole year' of me being over the threshold.

It is the whole year though, that's how tax works.

But you can manipulate your adjusted net income if you really want to.  Pension contributions are a good way of avoiding HICBC.

Although you will of course be constrained by MPAA now.  Which I presume you were aware of before taking taxable money out of the pension?

eskbanker

Bandy2023 said:

So, my question is, on my next tax return due in January 2027, am I able to specify I only went over the £60k from now until May/June?

Just to be clear, in your January 2027 tax return, you're required to declare all income received during the 2025/26 tax year - there's no 'specifying' of something happening outside that, and the April-June 2026 period plays no part in calculation of your 2025/26 tax liability, with income during that time being reported in your 2026/27 tax return, due in January 2028.

poseidon1

Bandy2023 said:

Apologies if this isn't the correct forum, but it is more of a tax question than a pension question.
I've had to withdraw money from my pension this month, I have paid tax on it.
However, the amount I've withdrawn combined with my salary will take me over the £60k limit for child benefit.
However, the child that we get benefit for will be leaving school this summer.
So, my question is, on my next tax return due in January 2027, am I able to specify I only went over the £60k from now until May/June?
I don't mind paying an amount of tax for me being over the threshold for this short period, it wouldn't be much.
But I will be annoyed if they class it as a 'whole year' of me being over the threshold.

Seems to me there is a possibility you might qualify to have your HICBC tax charge moved from self assessment and handled via PAYE going forward,  via the initiative below - 

https://www.gov.uk/child-benefit-tax-charge/pay-tax-charge-paye

https://www.pie.tax/tax-pible/hmrc-to-contact-100-000-parents-earning-60-k-80-k-after-child-benefit-rule

However, what is not clear is whether this option applies to Scottish residents which I understand is where you reside.

 I can only suggest that given your ongoing difficulties dealing with self assessment reporting, maybe worth your while seeing if you can default back to PAYE  handling your tax obligations,  by way of a phone call to  HMRC as set out in their guidance.

sheramber

The OP may not have to pay it back next year if he does not intend to draw down any pension next year. 

 Child is leaving school next September so  child benefit may cease then.