Loss of UK child benefit due to higher rate tax
Posted by: Calum F on 25 January 2012
Is there anyone in the UK who can tell me, can I use pension AVC's to "reduce" my salary to below the high rate tax threshold ?
Why don't you just ask your employer for a salary reduction. If that doesn't work then get a job that pays less.
I buy added pension years for my company pension which are deducted before tax is calculated thereby giving me tax relief on the payment. Whether that gets you below the threshold for child benefit I couldn't say. Perhaps someone with accountancy knowledge on the forum could advise.
Ken
Is there anyone in the UK who can tell me, can I use pension AVC's to "reduce" my salary to below the high rate tax threshold ?
That's a good idea, according to this it will work. You will also be paying less tax at a higher rate, the threshold for which is reducing from April:
You could make your wife your secretary and pay half your wages to her.
Callum,
I'm surprised that Naim Nymph hasn't berated you yet for trying to dodge your responsibilities to society.
Grow up and pay your dues. Next time round, vote for a different party - assuming you can find one that suits your personal wishes.
If. OTOH, it is perfectly within the rules to channel your income into a tax relief pension fund (I think the annual limit is now about £50k of contributions) and thereby avoid a cut in child benefits, fine go ahead, it might still be worth something when you need a pension and if "everybody" did the same, the government could reduce state pensions instead of child allowance.
Cheers
Don
Thanks Don for bringing my thread off life support. What is "OTOH" ?
On The Other Hand
= However
= but
= alternative point of view
Cheers
Don