Child Benefit Charge and Self Assessment
Child Benefit Charge and Self Assessment
Author
Discussion

mcbook

Original Poster:

1,442 posts

205 months

Friday 18th January 2019
quotequote all
I was under the impression that pension contributions could be deducted from income (as part of calculating Adjusted Net Income) to reduce your liability for the High Income Child Benefit Charge. I make a significant contribution to my company pension scheme so this would be valuable to me.

However. when completing my self assessment it only asks for P60 earnings and doesn't give me the opportunity to include pension contributions anywhere.

The only place where pension contributions are mentioned, it specifically says "do not include contributions to your employers pension scheme".

So, I have two questions:
1. Can I deduct my pension contributions from my income to reduce liability here?
2. How do I do that on the self assessment form (online)

Thanks

C0ffin D0dger

3,440 posts

175 months

Friday 18th January 2019
quotequote all
This only works if your employer takes your pension contributions through salary sacrifice (i.e. it's deducted from your pre-tax earnings.) and therefore your declared net income on your P60 is reduced.

If they don't do this then you pension contributions are topped up at the nominal tax rate (20%) when paid into the scheme, if you pay high rate tax (40%) then you can then claim back the difference on your contributions as a tax refund, you can do this through self assessment.

Edited by C0ffin D0dger on Friday 18th January 13:36

mcbook

Original Poster:

1,442 posts

205 months

Friday 18th January 2019
quotequote all
Thanks. I do actually make contributions via salary sacrifice (selected that option on pensions form) but that doesn't seem to be reflected in my P60 earnings.

C0ffin D0dger

3,440 posts

175 months

Friday 18th January 2019
quotequote all
Probably need to talk to your employer / payroll then. They might not have got your P60 right.