Apologies if this has already been done to death, but I just want some clarity for my specific situation.
I'm trying to avoid the tax charge on child benefit. I currently expect to earn £55,094 after my employer pension is deducted for the 2018/19 tax year. I also anticipate paying 4 remaining months of Cycle to Work for the tax year 2018/19, amounting to £299.72.
I do not currently claim childcare vouchers, although I can do so through my employer up to a maximum of £243 per month or £2,916 per year. The childcare vouchers are deducted before tax; my benefits portal indictes a tax saving of £1,166.40 per year through claiming them, and a £58.32 saving on NI.
Am I correct in thinking that my ANI overall for 2018/198 if I take the maximum amount of childcare vouchers would therefore be:
£55,094 - 299.72 - 2916 = £52,078.28?
A further question I have:
I'm aware that to avoid the charge completely I should make additional pension contributions of >£2,000 per year. Any thoughts as to whether this is best done through AVCs with my existing pension, or whether I should consider opening a SIPP to make them from my take-home pay?
Many thanks in advance!
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch