One of my clients wife asked me today about the whole child benefit tax for higher earners, and I just want to make sure I have all the information correct.
She works in London & commutes (which cost about £8000 pa), plus she pays money into things like share purchase.
What I understand the £50k is based on the taxable income ie base salary + benefits (on p11d) less pension/charity contributions. I know some share purchase schemes come out of income pre tax, can these be used to reduce the child benefit income?
Also is there anything that can be done about the commuting costs? As this would take her under the £50,000.
One of the children they claim for is not hers (her husband claims for his son who lives with them)
And I understand additional incomes ie Rent from buy to let, dividends and interest is also included in the £50,000
Thanks Lyndsey
-- Edited by Lyndsey on Saturday 19th of April 2014 10:16:26 PM
Travel costs wont be taking into account. Not sure about the husband's child. Would have thought it was about the household income vs the household benefit. You might be able to get some further specific information asking the question...
Benefits system is a minefield, but I believe as Michelle has said that it is household income which is taken into account when assessing child benefits. I think if the joint income is over the amount it is affected it doesn't matter whose children they are.
