Approaching 100k, self assessment?

[the-norseman]

Hi all,

quick question, due to a few vacancies in our office I have found myself doing higher grade duty (doing the job above me) and also covering another vacancy on overtime.

I for the first time ever am approaching 100k before tax, I think I may possibly hit/go slightly over 100k before April.

My partner is self employed, she doesn't earn much to be honest. We dont claim child benefits.

We do however use the 15 hours free child care and "tax free" child care through the GOV website.

I've been told by lots of people that you need to do a self assessment if you hit 100k but it looks like that might of changed now? I'm payed by PAYE , never had to do a self assessment before.

[gazapc]

the-norseman said:

.

We do however use the 15 hours free child care and "tax free" child care through the GOV website.

A reminder that regardless of PAYE/self assessment, unless you don't mind losing the free hours you need to keep your adjusted income below 100k (via say pension contributions)

[the-norseman]

I'm really not sure if I am going to hit it or not, March payslip will give me a better idea.

[ukwill]

Self assessment threshold is now above £150k

https://www.gov.uk/income-tax-rates/income-over-10...

[okgo]

Yes you want to stay below £100k if it’s marginal for childcare purposes. Makes a huge difference.

You can also get tax free childcare I believe?

[the-norseman]

Yeh we do that now, I pay in and the gov pay the extra 20%.

[fat80b]

the-norseman said:

I think I may possibly hit/go slightly over 100k before April.

....

I've been told by lots of people that you need to do a self assessment if you hit 100k but it looks like that might of changed now? I'm payed by PAYE , never had to do a self assessment before.

You need to act before April and not afterwards - If you go to do a self assessment after April and you discover that you crept over 100K, I don't think there is anything you can do to retrospectively fix it. It would be a very expensive mistake to make.

You can "solve" it before the end of the tax year by making a pension contribution into a SIPP before April 6th (that you will receive tax relief at source on and then a tax refund from HMRC) after you fill in the self-assessment after April.

My thinking would be to make absolutely sure that there is no risk at all of creeping over the limit - consider all your income, don't forget any additional in work benefits (e.g. healthcare etc) and even things like bank interest. I'd triple check the calculation to make sure you don't accidentally go over as the loss of the 15 hours is huge and binary.

[plenty]

As above. Self-assessment is straightforward. The bigger problem is getting hit by the marginal rate at 100k.

[the-norseman]

Our lad will be 3 in June, looking at Gov website "All 3 and 4-year-olds who live in England are entitled to this offer irrespective of income levels, benefit status, or family circumstances."

So if I did loose it, it will for 4 months, pain in the rear but ill just have to pay the difference I suppose.

I pay into company pension, not sure how easy it is to make overpayments.

[Mr Overheads]

Make a ball park estimate of how much you'll go over, let's say it's going to be £103k. Open a SIPP, pay £5k into the SIPP to play safe. You'll save yourself 60% tax on the £3k. Or ask Employer to salary sacrifce £5k.

[the-norseman]

I'll speak to the pension people and see if I can offload some.

[fat80b]

the-norseman said:

I'll speak to the pension people and see if I can offload some.

Depending on your provider, it's probably as simple as having your login details, getting into your pension, and clicking the button to make an additional contribution.

But given that time is running out, I'd be trying to make sure that you are able to dump the required amount into a pension somewhere (either your current workplace one, an older one that you have the login for, or a newly opened one).

[the-norseman]

I only have the workplace one, need to find out the login details.

Update - Payslip is in I'm at 89k YTD now, paid 4 weekly so I think the next one is the final one for 24-25.

[okgo]

Payroll usually the ones at work responsible for changing contributions for workplace, easy to do at most places with an email/jira ticket

[the-norseman]

just looking I think you have to submit a form.