How I Make OVER £50,000 A Year AND Keep My Child Benefit

Child benefit is an extremely valuable tax-free gift from the Government to parents. If you qualify, you currently receive £1,133.60 a year for your first child, then £751.40 a year for each subsequent child.

But beware, as a 1% tax charge is applied for every £100 a member of your household earns over £50,000 a year. This video explores the benefits of making pension contributions to take advantage of significant marginal tax rates for people earning above £50,000.

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[TheRetirementCafe]

How can you keep Child Benefit when earning more than £50, 000 a year? Here's how.

[darius]

Definately added value to my understanding of tax intricacies :) Thank you!

[troyfletcher]

Hi Justin, If you earn over 50k and manage to reduce it under 50k via pension contributions. Do you still have to fill out a self assement or is it ok to just not report it as normal. Thanks

[hamiltonmews]

An absolutely disgusting and unfair tax. Literally stealing money from children, via their parents. No incentive for working parents to progress in their careers, do overtime or get bonuses. No wonder this country is so unproductive.

[mrmeldrew]

Thanks for this.
I'll be earning about £4K over the threshold this year, (after my usual pension contributions).
My wife happens to earn about £5K a year total as she has a tiny part time job around the kids.
It's infuriating that housholds earning £90K are clear, but us on £60K are treated as high earning.

[raymiah]

Hi Justin. Is it too late to put money towards a pension to avoid/reduce the amount of high income tax for 2022-2023? Or can I only do this for the current tax year and going forward?

[childmaintenanceuk]

Savings can be even higher if the person paying into a pension pays child maintenance through a Child Maintenance Sevice (CMS) as contributions to a pension reduce the income, meaning that a lower rate is payable.

This is significant as CMS payments are worked out on Gross Income, and can be as much as 19% of gross income. So someone earning 60K and on higher rate tax, could also be paying a further 19% in Child maintenance, on top of the tax and NI. Which is siognificantly reduced if money is paid into a pension.

[StephenGraham-fpxt]

Hi Justin. I receive a total of 75k a year. Made up of 2 Jobs and an Army Pension 1 job is 50k the other is 10k and the army pension is 25K. My main job at 50k I sacrifice 27k bringing me to a total of 48k. Is the higher child benefit charge based on the 48k or 75k. Thanks in advance.

[ade]

Hi Justin, I'm borderline 40% tax bracket and will cross that threshold after this years pay review. Been looking for an explanation like this for a while, so a big thank you. Is there any way of keeping my wife's marriage allowance too through pension contributions, or will I lose that when I cross that threshold?

[banichoudhury]

He Justine, I earn 70k, with 6.5k car allowance and a 10k bonus, I currently pay £184pm on pension contribution. How do I keep my child benefit ££

[Afzal_EightySix]

Hiya, do you have an example for the £100k earnings limit, not for child benefit, but for childcare costs instead? TIA

[syedali]

Hello Justin. I have a question in light of yesterdays new budget. I earn £64, 000 a year. Do I still need to complete a self assessment tax return? I have been doing so each year since earning more than £50, 000 however after yesterdays Budget announcement, can i stop doing the self assessment tax return? Advice will be much appreciated. Thank you

[jimbobentley]

Hey! Great video! Although I feel it would be great if you could break the “how to do it” down a bit. Do I phone my work pension provider and ask to increase pension contributions? Do I just make a payment to my pension provider from my already taxed pay? If so then I’ve already had NI deductions?

Any help appreciated mate. Keep it up 🫶

[rinakaur]

I thought this only worked if it was done via salary sacrifice through your video suggests you can do it by putting money into a private pension?

[itskeirashorts]

Hi Justin, my last year pay was 59000 but my basic was 44000, the difference was in overtime, now HMRC are saying that my Net income is over £50000 and I need to fill in a Self Assessment as I claim for 2 children, what are my options?, is the Net Income 59000 or 44000?, any support would be great.

[paulhinkley]

There should be a late payment charge imposed to hmrc for the late payment applicable to hmrc i want £100 per day for their late payment to my account immediately

[rge]

Either make AVC’s into your pension to get it back under £50k or lose the child benefit.

[davidhamilton]

Thanks 👍 my pension is deducted from pay before tax, does this still apply?

[Stormfrce]

Just to add the they whole one person earning over 50k and the child benefit thing is such a joke if we both earned 49'999 we would still get the full child benefit

[jacobfield]

While poor families cannot pay their energy