With regards to High Income Child Benefit Charge and how pension contributions can be deducted from gross income if they have been paid from net pay.
My workplace pension scheme employee contributions are deducted from my net pay and then tax relief is claimed at 20% and paid into the pension scheme.
My understanding is that if gross income was say £60k and net pension contributions paid were say £3k (grossed up figure £3,750) then the gross income figure used when calculating liability for High Income Child Benefit Charge would be £60k - £3,750 = £56,250.
I have tried to get some clarity from HMRC but have been getting conflicting answers.
HMRC are currently seeking to re-coup tax charges from previous years so I need to ensure I calculate my liability accurately.
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