68% Tax Relief and Child Benefit Back.
Fight Back and Reclaim your Child Benefit.
It has been well documented that child benefit has reduced if you have a higher rate tax paying parent and stops completely if one parent earns £50,000 pa or more. One million families have lost their child benefit.
So what have we lost? For families with two children this means a loss of £1,752 pa. For a family with three children, this means a loss of £2,449 pa.
What have we missed? £50,000 is not just your gross income. It is your adjusted net income.
Basic Income Tax Payable on £50,000 Salary, 3 Children
Getting Net Your Net Adjusted Taxable Income to below £50,000
Suggestion 1 - Talk to your employer about Salary Sacrifice Income or Sacrifice Bonus and for them to pay this into a pension scheme for you.
Suggestion 2 - If you run your own business, reduce salary, reduce dividends and pay into a pension scheme to reduce your net adjusted taxable income
The numbers if you have 3 children
Total Additional Benefit to you/your family:
An effective child benefit/pension tax relief rate of 68.09% on a £10,000 pension contribution
A slightly lower effective rate if you are a business owner and pay dividends but still around 55%.
Contact us for help with pensions, tax relief and reclaiming your child benefit back.