Simple task. Maybe I'm just tired, but I have worked out one figure, my client worked out another and HMRC is coming up with another. Please would some kind soul work this out for me?
Client has earned £52,379.78 in year ended 17/18
Child Benefit was claimed of £1,788.80
How much does she owe for tax on the overclaimed CB? and please show workings ;-)
Thank you in advance.
Replies (6)
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23% of £1788.80
£2,379.78 over £50K - £2,3xx/£10,000 = 23%
Gift aid will move the threshold so if you have any of that then adjust accordingly.
Yes, there are 100 1% steps. It's not a slope. It's a staircase.
It leads to massive marginal rates as you click over from £xxx99.99 to £xxx00.00 if you have three sets of quins.
Pensions will reduce your relevant |(to HICB) income too.
Thank you. I was doing 23.79%.
What did your client come up with ?
Just out of interest, like ................