The High Income Child Benefit Charge is draining your retirement—here’s the ruthless hack to keep the cash and retire wealthier than ever.
If yours is a two-income family and you both earn over £60,000, you’ll both need to make extra pension top-ups to take you both below the danger zone.
All this is perfectly legal. (Recall the difference between tax evasion and avoidance).
And doing so is probably worth it if you can – though not quite the slam dunk it was under the old system, with its even more punishing effective rates.
Today a higher-rate taxpayer with two kids who uses extra pension contributions to reduce his or her income enough to keep all their Child Benefit will effectively be paying just 49p for every £1 of top-up into their pension.
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