Hi
I have fallen into the 40% tax band for tax years 21/22 and 22/23 and am about to complete self assessment forms. During this time I have received Child Benefit for 3 kids so approx £50/week
I understand that unless I do something about it paying tax at 40% means that I am liable for the High Income Tax Charge and may now need to repay some or all of the benefit received.
However, I believe that if I make pension contributions, these can be grossed up and reduce my top line income on which tax is calculated therby allowing me to keep hold of the benefit received.
If I make the contributions before 6 April I assume that I can reduce/keep the child benefit for 22/3. My question is whether I can make contributions now but backdate them to 21/22 to claim relief for that tax year retrospectively ? I have seen reference to a 3 year carry back and carry forward but can't find anything specific
Total contributions will all be made from salary in the 40% band and therefore I believe be eligible to be grossed up 40%. Contributions will not exceed my salary
If I can, is there any particular wording I need to use when dealing with the pension company / HMRC ? Can anyone direct me to any particular tax references to quote when setting this up.
Thanks very much in advance
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