Child benefit - earnings question
Discussion
Just a quick question with regard child benefit and declared earnings.
I am basically an edge case, I currently salary sacrifice circa £14k a year, Share scheme/c2w/pension/leave purchase. This should bring me down to 'around' £60k earnings this FY.
CP jnr is due at the end of January.
Do I need to consider interest and dividends payments as earnings if they fall under the taxable allowance.
I only have around 2.5k in easy access cash savings and take a miniscule dividend from pennon group and possibly a small dividend from RR shares out of an ISA. But these will all be under taxable amounts. (Much of my savings are in Premium bonds and ISA's).
To clarify, say I earn £59950 in this FY, and get £150 from dividends and interest payments. Will this mean I have to do a self assessment for child benefit?
Clearly it may be easier to just take some unpaid leave to stay under the threshold if this is the case.
Or should I be doing a self assessment anyway?
I am basically an edge case, I currently salary sacrifice circa £14k a year, Share scheme/c2w/pension/leave purchase. This should bring me down to 'around' £60k earnings this FY.
CP jnr is due at the end of January.
Do I need to consider interest and dividends payments as earnings if they fall under the taxable allowance.
I only have around 2.5k in easy access cash savings and take a miniscule dividend from pennon group and possibly a small dividend from RR shares out of an ISA. But these will all be under taxable amounts. (Much of my savings are in Premium bonds and ISA's).
To clarify, say I earn £59950 in this FY, and get £150 from dividends and interest payments. Will this mean I have to do a self assessment for child benefit?
Clearly it may be easier to just take some unpaid leave to stay under the threshold if this is the case.
Or should I be doing a self assessment anyway?
HMRC says "yes" -
What counts as income
To work out if your income is over the threshold, you’ll need to work out your ‘adjusted net income’.
Your adjusted net income is your total taxable income before any allowances and not including things like Gift Aid. Your total taxable income includes interest from savings and dividends.
Use the Child Benefit tax calculator to get an estimate of your adjusted net income.
What counts as income
To work out if your income is over the threshold, you’ll need to work out your ‘adjusted net income’.
Your adjusted net income is your total taxable income before any allowances and not including things like Gift Aid. Your total taxable income includes interest from savings and dividends.
Use the Child Benefit tax calculator to get an estimate of your adjusted net income.
Cats_pyjamas said:
Ah okay thanks, I did browse the .gov page, but must have missed that statement!
Definitely something to consider then. I guess if I muster all of the info to know my financial position, it's not much more effort to enter that into a self assessment.
Yep - I think doing the WORK for a self assessment return is a good "tax check" exercise - even if you decide you don't need to submit a returnDefinitely something to consider then. I guess if I muster all of the info to know my financial position, it's not much more effort to enter that into a self assessment.
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