Don’t forget that if you are receipt of child benefit and your adjusted net taxable income is at least £50,000 you may fall into the high income child benefit charge.
This charge claws back the child benefit received proportionately when income reaches £50,000, until £60,000 when it is withdrawn completely.
The charge is collected either via your self-assessment tax return or if you do not fall under the self-assessment regime via a tax calculation issued by HMRC.
Adjusted net taxable income includes all taxable income sources, such as employment income, dividends and rents but also the value of any benefits in kind provided by your employer. Income for this purpose can also be reduced by personal pension contributions and gift aid payments, grossed up for the basic rate of income tax.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.