How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Hi, my earnings have just jumped by £10k to £51k +car my wife

Customer Question

Hi, my earnings have just jumped by £10k to £51k +car my wife has an income from a property she rents which is approx £7000pa. She receives child benifit for our two children. How will my change in income affect us
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

There is some very useful information on the the child benefit tax charge here. If your "adjusted net income" in the current tax year is more than £50,000, then you will have to pay the charge. You can work out what your likely adjusted net income for 2014/15 will be by using the calculator here. You can keep your income at or below £50,000 and so avoid the charge by paying sufficient pension contributions and/or making charitable contributions.

The tax charge is 1% of the child benefit you or your wife receives for every £100 of income that your income exceeds £50,000. The calculator will work out the potential tax charge based on the information you put into it.

I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 3 years ago.

Hi again. It's been a couple of days since I answered your question. Is there anything you need further clarification on? If you would like me to calculate the extra tax you will pay as a result of your pay rise and acquisition of a company car, please let me have the car details.