High Income Child Benefit Charge (HICBC)
01 Oct 2024
Published in: Member News
How Strategic Tax Planning Helped Mr. A Save £££s Compared to Mr. B"
A Tale of Two Taxpayers: Mr. A and Mr. B Both Mr. A and Mr. B are employed with no other sources of income, and both have multiple employers (let’s assume 3). For the tax year 2023/24, they each earned a total of around £58,219.72 in employment income and received about £384 in child benefit payments. Here’s where things differ: Mr. A was aware of the High-Income Child Benefit Charge (HICBC) and hired a professional to handle his taxes. Mr. B ignored it. Mr. A also contributed around £3,000 to a personal pension during the same tax year and claimed employment expenses paid by himself of around £861, following his accountant’s advice and within his budget.
The Results?
Mr. A received a tax refund of around £573.37
Mr. B ended up with a tax liability of around £322.63
If you'd like to plan like Mr. A, let’s connect!
Shahzad.younas@aims.co.uk
Comments
Post A Comment
You must be logged in to post a comment. Please click here to login.
Our Patrons
