Use pension contributions to claw back child benefits - Royal London

The firm said hundreds of thousands of working families were unaware that HM Revenue & Customs (HMRC) determines the ‘High Income Child Benefit Charge' based on income net of pension contributions. Increasing pension contributions would therefore incur a lower child benefit charge, it said. Since 2013 working families, where one parent earns more than £50,000 a year, face a 'special tax charge' which can wipe out some or all of the value of their child benefit.  This works out as 1% of their child benefit for every £100 earned above the £50,000 threshold, up to a maximum of 100%. W...