Child Benefit And Gift Aid

barnaclebill58 | 09:01 Thu 28th May 2015 | Personal Finance

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Child benefit is tapered away once gross income is over £50000 but certain deductions are allowed from that gross income. One deduction is pension contributions.
Suppose my gross income is £55000 and that I pay £4000 into a pension. Then I reckon my income for child benefit purposes is £51000.
Now suppose I make a gift aid payment of £500.
Is my income for CB purposes now £51000-500=£50500 or
£51000 -500 x120/100= £51000 -600=£50400.
There is something about grossing up that I don't understand.
Thanks

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fiction-factory

In terms of tax, I think the gift aid only allows you to reclaim the difference between 20% tax and the 40% tax rate. I'm not sure about how things work in respect of child benefit but I doubt the whole £500 would be deducted

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