Hi,
We currently receive child benefit for a single child (from jan 2013); applied via my partner.
In terms of the high income child benefit charges, I wasn't really aware of the details back then and I guess they never really applied due to our financial circumstances at that stage.
However, during this year my gross salary has exceeded the 50k mark, and only recently came to realise that the HICBC might actually apply?
I've always been PAYE and never had to do any SA; and HMRC has never requested for a SA. I only have one main source of income through my employer and paid 4 weekly. I am also in the company pension scheme, where I pay about 7-8% of gross salary and the Employer contributes about 19%. I also participate in getting child care vouchers (£112 per 4 weeks). In terms of P11D benefits, I get £400 of free child voucher per year.
Having read into HICBC, it mentions that one should calculate their "adjusted net income".
For my situation, would this simply be calculated as:
YearlyGrossSalary PLUS
YearlyTotalP11DBenefits(i.e. £400 of free child vouchers) MINUS
YearlyTotalChildVoucherAmounts (i.e. 13 * £112 ) MINUS
YearlyTotalPensionContributions (i.e. 7-8% yearly gross salary contributions)
Which I presume can be derived from both P60 and P11D for this calculated adjusted net income amount i.e.
Within P60 - The Pay "Total for year" amount under section 'Pay and Income Tax details' PLUS the benefit amount detailed in the corresponding P11D, which would be the adjusted net income amount.
I understand if the "adjusted net income" amount exceeds 50k then the HICBC applies; at 1% of child benefit amount per £100 from 50k-60k.
I must admit that I'm not very clear on the adjusted net income calculation, and wanted to check if this is correct?
cheers,
Rice
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