Child benefit- step parent

[LosingGrip]

I'm struggling to find anything with my Google skills.

My partner has one child with her ex. He lives with us (her son not her ex!). She gets child benefit.

I understand that the benefit gets reduced when the parent earns over £50,000.

How does this work for me in this case? We aren't married. Live together. She's currently not working due to illness and I've been smashing out the overtime lately to make up for it. When I get my pay rise next year I'll be over the £50,000 limit.

[Harbuzi]

Don't know about the rules of parents/step parents, but the threshold is now £60k so you might be okay!

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

[LosingGrip]

Ah result! Thanks.

[Eric Mc]

If you live with the mother of the child, it's YOUR income that needs to be looked at regarding Child Benefit (not the ex-husband/partner).

As has been mentioned, you appear to be under the current threshold for the moment but you do need to be aware it's the couple who live together who need to monitor their income.

[FreeLitres]

Remember, it's based on taxable income, not just wage and bonus.

Wage +£55k
Bonus +£5k
Company car BIK +£8k
BUPA BIK +£2k

Minus your pension contribution -£2k

Total taxable income = 55+5+8+2 -2 = £68k

Increasing your pension contribution is the easy fix to meet taxable income tax thresholds

[LosingGrip]

FreeLitres said:

Remember, it's based on taxable income, not just wage and bonus.

Wage +£55k
Bonus +£5k
Company car BIK +£8k
BUPA BIK +£2k

Minus your pension contribution -£2k

Total taxable income = 55+5+8+2 -2 = £68k

Increasing your pension contribution is the easy fix to meet taxable income tax thresholds

Just coming back to this.

Ive just had a payrise and due another on 01/09/2025. This is a payrise of just under £10,000. I also do do a lot of overtime. Last year it was around £17,000 (before tax).

My pension contributions are 13.44% but only on my Base salary and NOT overtime.

Is my maths correct that I take my pension contributions off my yearly salary (£50,256-13.44%) and then add my overtime on and as long as its under £60,000 everything is OK?

[Sslink]

LosingGrip said:

Just coming back to this.

Ive just had a payrise and due another on 01/09/2025. This is a payrise of just under £10,000. I also do do a lot of overtime. Last year it was around £17,000 (before tax).

My pension contributions are 13.44% but only on my Base salary and NOT overtime.

Is my maths correct that I take my pension contributions off my yearly salary (£50,256-13.44%) and then add my overtime on and as long as its under £60,000 everything is OK?

If your overtime is not classed as pensionable pay, then you'd need to increase your pension contributions (probably via AVC) to keep your Adjusted Net Income below £60k. How much you contribute really depends on how much overtime you are going to do.
Either way, I'd strongly recommend doing a Self Assessment when the time comes (If you've never done one before, make sure you register for SA well before the window). If you've got nothing to pay then you're good, if you do then you just have to take it on the chin and pay, better than being ignorant of it and getting stung for multiple years of repayments and a fine in 2-3 years.

[LosingGrip]

Sslink said:

If your overtime is not classed as pensionable pay, then you'd need to increase your pension contributions (probably via AVC) to keep your Adjusted Net Income below £60k. How much you contribute really depends on how much overtime you are going to do.
Either way, I'd strongly recommend doing a Self Assessment when the time comes (If you've never done one before, make sure you register for SA well before the window). If you've got nothing to pay then you're good, if you do then you just have to take it on the chin and pay, better than being ignorant of it and getting stung for multiple years of repayments and a fine in 2-3 years.

Thanks ill look at that later.

I cant increase my pension contributions through work (police).

[Jamescrs]

LosingGrip said:

Thanks ill look at that later.

I cant increase my pension contributions through work (police).

Have you looked at other salary sacrifice options such as obtaining a car on salary sacrifice? Cycle to work is also an option but the dent from that probably not as significant.

[LosingGrip]

Jamescrs said:

Have you looked at other salary sacrifice options such as obtaining a car on salary sacrifice? Cycle to work is also an option but the dent from that probably not as significant.

Id love to work in the private sector and get a car on salary sacrifice.

C2W is a possibility but dont have anywhere to put a bike.

[Sheepshanks]

LosingGrip said:

Just coming back to this.

Ive just had a payrise and due another on 01/09/2025. This is a payrise of just under £10,000. I also do do a lot of overtime. Last year it was around £17,000 (before tax).

My pension contributions are 13.44% but only on my Base salary and NOT overtime.

Is my maths correct that I take my pension contributions off my yearly salary (£50,256-13.44%) and then add my overtime on and as long as its under £60,000 everything is OK?

You'd be just about OK with those numbers. You're going to be paying a chunk of tax at 40% though.

If you can spare some of the money you could start your own SIPP and get some of the 40% tax back, and be sure of being under £60K.

[Jamescrs]

LosingGrip said:

Id love to work in the private sector and get a car on salary sacrifice.

C2W is a possibility but dont have anywhere to put a bike.

I don't know which force you are linked to but I do know that some forces are doing salary sacrifice through the NHS scheme, I can say for definite West Yorkshire has recently opened it.