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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4940
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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MY QUESTIONS ARE REGARDING CHILD BENEFIT . I AM AWARE OF THE

Resolved Question:

MY QUESTIONS ARE REGARDING CHILD BENEFIT . I AM AWARE OF THE EARNINGS THRESHOLDS . BUT WISH TO CONFIRM ON WHAT DETAILS THE CALCULATION IS MADE .
MY P60 AGREES EXACTLY WITH MY EARNINGS INCLUDING BONUS , LESS PENSION DEDUCTIONS .
IS THE P60 FIGURE TAKEN AS THE FINAL FIGURE FOR ASSESSMENT ??
OR AS I THOUGHT WOULD YOU TAKE P60 EARNINGS , PLUS BENEFITS IN KIND FROM MY P11D , MINUS PERSONAL ALLOWANCE FROM MY PAYE CODING NOTICE .
I DELIBERATELY MANAGE MY FINAL NUMBERS TO REMAIN UNDER THE £50,000 LIMIT .
USING THE P60 ALONE I WOULD EXCEED THE £50,000 BY £1,317.58 , USING MY CALCULATIONS I REMAIN £216.06 UNDER . ( WHAT IS CORRECT )
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

Adjusted net income for child benefit charge purposes is made of:

- gross income from employment including benefits in kind
- unearned income
less
- pension contributions if any

More information on this can be found here

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

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

YOU HAVE TOLD ME PART OF THE ANSWER , BUT IF BENEFITS IN KIND ARE ADDED ON DOES THE 2014/2015 PERSONAL ALLOWANCE COME OFF ( THIS WAS £10,000 ) OTHERWISE I AM STUFFED . AGAIN TO CONFIRM, IF IT IS THE P60 FIGURE PLUS BENEFITS IN KIND LESS THE PERSONAL I WILL BE WHERE I WANT TO BE .

STILL IN MY OFFICE IF REQUIRED 01702 510433 TERRY

Expert:  taxadvisor.uk replied 1 year ago.

Terry, thank you for your reply.

I thought I had answered your question by saying you deduct pension contributions from your gross pay to make it net income

Personal allowances are excluded from the equation in arriving at net income for child benefit charge calculation purposes.

It is taxable pay from P60 plus benefits in kind before personal allowance ..
This may not be the answer you were looking for, I'm afraid. .. sorry.

I hope this is helpful.

Customer: replied 1 year ago.

SORRY NOT GETTING MY HEAD ROUND THIS . PLEASE LOOK AT THESE NUMBERS AND CONFIRM MY POSISTION . I HAVE NO ADDITIONAL EARNINGS OTHER THAN STATED .

£51,317 SALARY AFTER PENSION DEDUCTIONS

£8,466 BENEFITS IN KIND AS PER P11D

£10,000 PERSONAL ALLOWANCE

AM I OVER THE £50,000 CEILING ??

Expert:  taxadvisor.uk replied 1 year ago.
Terry, thank you for your reply

Your net income is (51,317+8,466) = £59,783

I am sorry to say but you are over the £50,000 limit as the figure is taken before personal allowance.

I hope this is helpful.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4940
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
Terry, here is a link that confirms what I have stated in previous posting
https://www.gov.uk/child-benefit-tax-charge


I hope this is helpful.

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