Adviser Centre

Child Benefit Calculator.

On 7 January 2013 a tax charge was introduced when a taxpayer or their partner gets child benefit, and either of them has taxable income in excess of £50,000 a year.
For every £100 of taxable income above £50,000 a 1% child benefit tax charge will be imposed.  
Where one parent has adjusted net income exceeding £60,000 a tax charge equivalent to all the child benefit will be imposed.

To mitigate the child benefit tax charge it is possible for the parent to reduce their taxable income by making a pension contribution, making a gift to charity or sacrificing salary for child care vouchers. We have developed an easy to use calculator that demonstrates how it is possible to mitigate the child benefit tax charge at the same time as saving into a pension.  

Start using our Child Benefit Calculator.

Your details

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Number of children eligible for child benefit
Please enter the appropriate number of children.
Information
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The gross taxable income
Please enter the total taxable income for the current tax year. Your taxable income will include income from employment, income from pensions and property, dividends etc.

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Current gross pension contribution
Please enter the amount you will contribute to all pension arrangements in the current tax year. This figure should not include any contributions paid by your employer.
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Additional gross pension contribution
Please enter a figure that you would like to pay in addition to the amount you currently contribute.
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Employer NI give up
Where a salary/bonus sacrifice scheme is offered an employer will often add on some or all of their National Insurance (NI) saving. If your employer is willing to pass on their NI saving please enter the percentage that they are prepared to give up.

Your results

 
Net
salary
Child
benefit
Child benefit
tax charge
Value of
cash benefits
Pension
contribution
Value of
all benefits

For the purposes of calculations we have used a personal allowance of £10,000.

For a comprehensive explanation of how making a pension contribution can mitigate the Child Benefit tax charge you can access our pension profile. Alternatively you can read our brief summary, sales aid.

Legal & General takes no responsibility for how the output from this calculator is used.

The information in this calculator is based on our current interpretation of the law and tax rates, which may change in the future. The value of tax relief will depend on the individual circumstances of your client. The value of any money invested in a pension plan can go down as well as up. Any money invested in a pension plan is normally tied up until benefits are taken, which will generally be from age 55.

Variables        
Child benefit for first child      
Child benefit for subsequent children      
Earnings from which child allowance starts to erode      
Earnings from which child allowance completely lost      
Personal allowance      
Basic allowance      
PA reducer allowance      
Higher allowance      
Nil rate      
Basic rate      
Higher rate      
Top rate      
Primary Threshold      
Secondary Threshold      
Upper earning limit      
Nil rate      
12.0% rate      
2.0% rate      
13.8% rate      
         
Calculated values    
Value of child benefit (per week/year)        
  No pension contribution Maintaning current pension contribution Increased pension contribution Increased pension contribution with (simple) salary sacrifice
Total pension contribution
Adjusted net income
% of child benefit available
Adjusted personal allowance
Employee IT
Employee NIC
Employer NIC
Net salary

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