The High Income Child Benefit Charge is draining your retirement—here’s the ruthless hack to keep the cash and retire wealthier than ever.

EMTR = 40% + (2251.60/200) = 51%

Ouch!

Using a pension to reduce your income

To keep all the Child Benefit, both parents need to earn less than £60,000. This way your household is not liable for the High Income Child Benefit Charge.

But what if one or both of you is unfortunate enough to enjoy a higher income?

There are a few things you can do about it:

• Split up with your higher-earning partner

• Tell your boss you will work for free

• Tell your husband, wife, or whoever, that they can quit their high-paying job in return for certain non-taxable favours

• Make hefty pension contributions to reduce your taxable income

I’m guessing the final option will be the most palatable for Monevator readers. (Though as I haven’t met your spouse I can’t be sure.)

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