Personal Tax Allowance and Child Benefit

[ackbullchang]

Having searched high and low over the internet of things, I am turning to the wisdom of Pistonheads for help!

Its a pretty mundane question, so apologies!

So, can anyone that knows these matters please tell me, if, for the purposes of "income" when calculating whether Child Benefit tax charges are applicable:

• is "income" classed as taxable income (i.e. if I had a salary of £50,001 and a tax code say of 1257L, taxable income of £37.4k for Child Benefit tax assessment), or,
• is "income" the "net" income (but not including the personal 1257L allowance)?

Its not clear across various Gov UK/HMRC and other various websites.

For the purposes of this question, pensions contributions, and other SMART outgoings are not applicable.

Thanks!

[bullitinhead]

For that scenario the 50,001 is your taxable income......

So for child tax credit 1 pound is liable


Unless I didn't understand the question correctly

Bullit

[ackbullchang]

Is your taxable income not your Gross income (i.e 50k) minus your personal tax allowance (i.e. 1257L - so in this instance £12,570)

i.e. "taxable income" is £37.4k?

Thanks

[Countdown]

AIUI tax code is irrelevant.

Your taxable income is your gross income less any pension contributions or salary sacrifice. the link below should be able to help you.

https://www.gov.uk/child-benefit-tax-calculator

Your taxable income includes things like:

your salary before tax (with pension contributions under net pay arrangements deducted)
other employment income, for example bonuses
taxable benefits provided by your employer, for example the value of medical insurance, a company car or anything else included on your P11D
income from pensions before tax, for example from a state pension
other income before tax, for example taxable profits from self-employment, taxable savings and dividends
income from property before tax, for example taxable rental income and any taxable benefits provided by your employer such as medical insurance

[ackbullchang]

Ok, thanks very much both. That clarifies it then!