allowance for kids - when does it get hit by salary?
Discussion
Quick question - I took a massive pay cut when I started this job, went back to 25% tax rate! I've been here a couple of years and am looking to move back out now, however in the last time we have had a change on the allowance we get for kids? Payment back when we get the tax return in? At what level of salary does the tax bit start to take effect?
Second question - is it possible to reduce salary by increasing how much pension payments I make?
Second question - is it possible to reduce salary by increasing how much pension payments I make?
Child benefit is withdrawn gradually when income exceeds £50k - I believe it reduces linearly at a rate of 1% for every £100 of extra taxable income with the effect that its withdrawn entirely when you reach £60k.
If you've received child benefit and then you (or someone else in your household) has singularly earned £50k+ in the same tax year then you'll need to do a self assessment and depending on the figures you may have to pay some or all of it back.
If you've received child benefit and then you (or someone else in your household) has singularly earned £50k+ in the same tax year then you'll need to do a self assessment and depending on the figures you may have to pay some or all of it back.
There is no specific 25% income tax rate. The rates are 10% (for same savings), 20%, 40% and 45%.
If neither of the earners in the household have salaries between £50,000 - £60,000, then you should be getting the full Child Benefit. As has been mentioned, if either of you earns between £50,000 and £60,000, you will lose some, but not all, of the child benefit. If either of you earn over £60,000, you lose ALL the Child Benefit.
If you have stopped receiving Child Benefit and are now eligible for it again, you need to contact the authorities immediately to get it reinstated. If you leave it too long you may find that you wuill miss out on some of what you are due as there are time limits for making back claims.
If neither of the earners in the household have salaries between £50,000 - £60,000, then you should be getting the full Child Benefit. As has been mentioned, if either of you earns between £50,000 and £60,000, you will lose some, but not all, of the child benefit. If either of you earn over £60,000, you lose ALL the Child Benefit.
If you have stopped receiving Child Benefit and are now eligible for it again, you need to contact the authorities immediately to get it reinstated. If you leave it too long you may find that you wuill miss out on some of what you are due as there are time limits for making back claims.
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