Tailor your return 13 - Was your income higher than your partners?
Work out your net income for the tax year 6 April 2020 to 5 April 2021 by following steps 1 to 4 below. If your net income is over £50,000 select 'Yes', otherwise select 'No'.
Step 1 - work out your 'net income'
Add up your taxable income, include things such as:
- income from employment including any company benefits
- profits from self-employment
- taxable social security benefits
- pensions including the State Pension
- savings and dividends above the tax free allowance
- rental income
then take off any tax reliefs that apply such as:
- payments made gross to pension schemes, those have been made without tax relief
- trading losses, for example, trade loss relief or property loss relief
This is your 'net income'.
Your net income is then adjusted - follow steps 2 to 4 below.
Step 2 - take off Gift Aid donations
If you made a Gift Aid donation, take off the 'grossed-up' amount, what you paid plus the basic rate of tax.
Step 3 - take off pension contributions
If you made a contribution to a pension scheme where your pension provider has already given you tax relief at basic rate, take off the 'grossed-up' amount, what you paid plus the basic rate of tax.
Step 4 - add back tax relief for payments to trade unions or police organisations
Tax relief of up to £100 is available if you make payments to:
- a trade union or police organisation for superannuation
- life insurance
- funeral benefits
If you took off an amount for this type of payment at step 1, add it back.
This is your 'adjusted net income' which determines if your income is over £50,000 for Child Benefit purposes.
If your income was higher than your partners income for the tax year 6 April 2020 to 5 April 2021 select 'Yes', otherwise select 'No' or 'Not a couple'.
