Hi,
I will earn around £58k of taxable income for 2016/17. This is made difficult to project due to an annual bonus payment mid March each year.
I buy £780 of child care vouchers (max I need) and contribute around £4,500 to my company DB pension, which is the maximum I am allowed.
Last tax year I was over the £50k off for child benefit and paid back £350.
I am in the process of setting up a private DC scheme but confused of how this will work, I.e how much to put in to come just below the £50k I read that 20% is added to the pension at source and 20% claimed at SA. With salary sacrifice it is easy to calculate as it comes straight from the gross. Do I basically need to work out the net amount to bring me under £50k, minus the 20% I will be able to claim at SA?
I'm in that middle income bracket of questioning the affordability of investing to retain the child benefit for two children, or taking the hit on 40% taxation coupled with the increasing reductions of child benefit. A bit of a minefield.
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