We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
How much pension should I contribute to avoid high income child benefit tax charge
Comments
-
until you can give a clear, unambiguous explanation of why you have been referring to £75,520
Calculation error/typo?0 -
Calculation error/typo?
It probably is but given the op is reluctant to clarify this despite repeated requests this thread appears to have come to an end with no answer
0 -
You really need government benefits ?Mortgage free
Vocational freedom has arrived0 -
Just employ an accountant to sort out your tax affairs. I pay mine around £250 a year, it's an absolute bargain as he always saves me more than he costs.Signature on holiday for two weeks0
-
It’s really quite simple if you’re only income is the £70,200 and your pension contributions are salary sacrifice. Just make your pension contributions £20,200 or more.
No need for an account IMO unless you have income from other sources. As the previous post the £250 or thereabouts could be well spent if you do though.0 -
Thank you all for your replies.
I appear to have confused terminologies with regards to my pay. For clarity purposes my salary is £65,000 and I also receive a car allowance of £5,520. As recommended I will increase my pension contributions to £20,520 in order to bring my net adjusted allowance to £50,000.
Thanks again0 -
Terminology want the issue, it was saying your salary was £65,000, car allowance was £5,520 but then stating your total income was £75,520 without explaining where the additional £5,000 came from.
It was probably just a typo but on an internet forum all we can go off what you type so providing income details totalling £70,520 but they saying your total income was £75,520 means we had no idea what the correct position was.0 -
No need to stick the knife deeper, they explained twice0
-
you also need to take in to account any expenses paid on your P11D and any savings/dividend income. best to find a tax return calculator spreadsheet and then you can plug in all the figures.0
-
MortagageWannabe wrote: »I will increase my pension contributions to £20,520 in order to bring my net adjusted allowance to £50,000
Only if you are paying your pension contributions under a salary sacrifice scheme, and then you need to make sure any adjustment you do Is based on only a potential 3 or 4 months this tax year to make the complete adjustment. you'd then need to change it for next year so it makes the adjustment over the full 12 months.
If you are making lump some payments to your occupational scheme to make these adjustments where relief is already applied at source you need to understand that the amount each payment you make actually nets the amount/80*100 off the tax liability. For sure if the payments are not done under sal sacrifice you will have to do a tax return.
Also check of your company car allowance attracts pension contributions or not.
And if you get a bonus that needs to be factored in too!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards