To stop my child benefit?

(66 Posts)
meboo Sat 05-Jan-13 19:12:02

Who actually understands the implications of this? I work and earn iro £7k per year, my OH earns iro £70k per year and so if I continue to receive Child benefit it will only be taxed out of his wages, swings and roundabouts.
I am sure I read somewhere about not stopping the contributions as it affects my 'stamp'.

I have looked at the HMRC site and I am none the wiser - help??

FiveGoMadInDorset Sat 05-Jan-13 19:16:11

I think you need to claim but then do a self assessment and include it in your income.

Euphemia Sat 05-Jan-13 19:45:33

If you're working your employer should be paying your NI stamp.

bluebiscuit Sat 05-Jan-13 19:48:43

It doesn't affect your NI for your state pension because you still have a child benefit claim, you are just reducing the payment to zero. The claim is still there.

meboo Sat 05-Jan-13 20:41:38

So I can stop claiming it and there is no repercussions?

JeezyOrangePips Sat 05-Jan-13 20:44:14

If you earn above the NI threshold there will be no repercussions. Under it and your pension contributions won't be protected. I can't remember the figure but I'll try and find it. It's been a while since I dealt with this stuff!

cocoachannel Sat 05-Jan-13 20:45:00

Much easier to simply stop it. I did do on line - took about 60 secs. Interestingly HMRC, having failed to issue a letter to me despite DH and I both earning above the upper limit, they wrote within 24 hours to acknowledge my request to stop.

cocoachannel Sat 05-Jan-13 20:46:12

Sorry should have said easier to stop it if earning that amount as unlikely to come down with pension contributions etc. which may bring it under the 60k.

LIZS Sat 05-Jan-13 20:47:00

Your pension is protected for as long as your youngest is under 12 whether you receive payment or not, pay NI through salary or are SAHM.

beachyhead Sat 05-Jan-13 20:47:37

Is there a link to where you can ask them to stop it and am I too late now?

JeezyOrangePips Sat 05-Jan-13 20:49:03

This year it's £107 per week, so as you earn over that then there should be no issues.

But it is based on your pay periods - so if you get paid £50 pw and then get a big bonus then you'd be better to claim child benefit. But if you get the amount split evenly over the year you should be fine.

meboo Sat 05-Jan-13 20:49:08

I have not received any notification from HMRC so was inclined to ignore it all and see what happens?

Euphemia Sat 05-Jan-13 20:50:34
Euphemia Sat 05-Jan-13 20:51:19

I thought that meboo, until I read the thread here about the 7 Jan deadline!

Kendodd Sat 05-Jan-13 20:52:38

Money Box on radio 4 advise keeping it so that's what I'm doing.

LIZS Sat 05-Jan-13 20:53:21

meboo , you or dp/h will be responsible for registering for SA if either of your income goes above 50k pa. HMRC have advertised in national papers as well as written to many of those who it may effect. Ignorance will be no defence !

JeezyOrangePips Sat 05-Jan-13 20:53:34

That's interesting LIZS, I hadn't come across that before. I find it odd as they have two similar NI credit reasons - caring for a child under 12 and getting child benefit, and simply caring for a child under 12 that you are related to.

lunar1 Sat 05-Jan-13 20:56:33

I just stopped mine, here is the link www.hmrc.gov.uk/childbenefitcharge/stopchbpayments.htm

lunar1 Sat 05-Jan-13 20:57:16

we have till midnight tonight to do it imtime to stop the next payment

LIZS Sat 05-Jan-13 20:58:00

Each individual has always been responsible for the amount of tax paid. PAYE should be effective for majority but with benefits in kind and salary sacrifice schemes , self employment and so on not always accurately, especially if you can claim back other things to offset.

ceebeegeebies Sat 05-Jan-13 21:00:31

Lunar I thought it was midnight tomorrow (so by 7th Jan)?

cocoachannel Sat 05-Jan-13 21:05:21

My understanding if the Money Box advice is to keep it if you're borderline. Not sure whether £70k would be considered that tbh. I just hate tax returns so anything to make it as simple as possible!

I had no notification and also only found out I needed to cancel by Monday through that thread.

All in all the whole thing continues to be a farce. I have no problem with the principle of not having it given what both DH and I earn but the whole thing resting on one person's salary makes me angry for those who perhaps have one salaried and one SAHP, which makes them just about illegible.

Wallison Sat 05-Jan-13 21:06:49

It's all a bit of a fucking shambles, isn't it? Surely if people need to do something they should have been informed of exactly what they need to do, in writing, and in plenty of time. This is what happens with every other benefit, after all.

meboo Sat 05-Jan-13 21:09:24

Couldn't agree more Wallison

PoppyWearer Sat 05-Jan-13 21:09:24

I'm keeping it, have also seen advice to do so, and I do DH's tax return anyway, so I'm sure it won't be that big a deal to sort out.

My DMum also had issues with gaps in her NI (apparent admin errors but she had no proof) and ended up making extra payments, so am keen to avoid any such problems.

Wallison Sat 05-Jan-13 21:16:26

meboo I suspect the reason that so many people haven't been informed in writing of what they need to do is that the chumps in charge of things haven't thought through the possibilities and actually don't know who should be doing what. Witness the conflicting advice that has been in and around the media since the announcement has been made, with little/no clarification from the govt. It's pretty shocking really because the implications can be huge if you make a wrong move now. It's their policy, but they don't have a clue as to how it works.

meboo Sat 05-Jan-13 21:21:43

I am listening to the money box broadcast now...... def a shambles. Why should you expect a man, who is not the father of children, to pay tax just because he is married to the mother!!!!!

Savannahgirl Sat 05-Jan-13 21:22:31

I decided to take the risk and stop getting the money as I couldn't bear the thought of HMRC cocking up my DH's tax code yet again. In terms of my NI stamps - I only get another year's worth anyway as my youngest DC is 12 next Dec.
Also I work part-time and earn just enough to get employers contributions but not enough to have to pay any myself just yet.

ceebeegeebies Sat 05-Jan-13 21:27:50

Ok, could someone tell me how it would work in my sister's case?

Her and her DH are seperated - the children live with her. She earns 60K plus and her ex-h claims the child benefit but as they don't live in the same house, does that mean he doesn't have to stop claiming it?

meboo Sat 05-Jan-13 21:37:36

ceebeegeebies it looks that way as it is calculated on household income.

ceebeegeebies Sat 05-Jan-13 21:42:48

That is what I thought - it is complicated though as her stepdaughter lives with her therefore her new husband will have to stop claiming for her...so basically based on my sister's earnings, her 3DC can still get the benefit but her stepdaughter can't...that seems fair hmm

Savannahgirl Sat 05-Jan-13 21:46:25

I thought the Government wanted to promote aspiration & stable marriages. This policy gives quite the opposite message

Wallison Sat 05-Jan-13 21:50:44

Savannahgirl for people lower down the income scale it has been apparent for maybe, ooh, thirty years, that successive UK govts have been all about anything but promoting aspirations; the working poor have always lost out if they got promoted/took on extra hours etc. As such, I don't really think it's such a big issue that it's now applicable to the top 10% as well; after all, they do have plenty of money anyway. What is appalling though, and what there needs to be a lot more fuss about, is how complex and unworkable a change this is, especially when it requires people to make decisions that will affect them far into the future without giving them clear guidance and information about what their options are.

SunshineOutdoors Sat 05-Jan-13 21:53:16

Erm, sorry to sound thick and uninformed but what's going on? I'm SAHM, dh earns £54k, cb gets paid into my account, what do we need to do and by when?

In words of one syllable if possible grin

Savannahgirl Sat 05-Jan-13 22:00:44

I don't disagree with you Wallison.

meboo Sat 05-Jan-13 22:01:42

here is the link you have to decide by midnight tomorrow.

ebersneezer Sat 05-Jan-13 22:03:33

This may help Sunshine

http://www.bbc.co.uk/news/education-20889073

We got the letter ages ago and keep forgetting. Yes, it make sense for us to cancel! Dunno what happens to a women who is a SAHM with high earning husbands who are being denied access to money.

occasionalposter Sat 05-Jan-13 22:28:35

DH told me about this article - it does answer some questions about NI contributions and Child Benefit claims.

www.moorestephens.co.uk/SE/Document.aspx?ID=6B5A75400B1C6E09BBB15C9CCC97CE8F

HousewifeFromHeaven Sat 05-Jan-13 22:37:33

I've just stopped mine online. Will it stop from February, or immediately?

SunshineOutdoors Sat 05-Jan-13 22:54:19

Thank you, I'll have a look at links tomorrow, glad I saw this thread on time and appreciate your replies smile

ConcreteElephant Sat 05-Jan-13 22:58:22

Housewife, my understanding is that it stops from 7th Jan, so some people will have had their final payment already. The HMRC website says some people will get a payment after this date in January but that's because it's paid in arrears, so you don't need to worry if this happens to you.

In terms of still getting stamp, the fact that you have claimed child benefit, whether you receive any or not, is sufficient to maintain your entitlement to a pension.

DH earns clear of the £60k so I've cancelled ours. The advice I read on the website gave me to understand that should we have more children we should still claim child benefit for them (just not receive it) as this would protect my stamp should I become a sahm and also ensure the child gets an NI number/ card at 16. I can't link to that as I'm on my phone and it's faffy but the advice was clear you won't lose your stamp if you stop receiving the benefit.

ceeveebee Sat 05-Jan-13 23:04:31

Both DH and I earn over the limit and I received a letter about 6 weeks ago. I've stopped it - not because of the inconvenience of doing self assessment, as we both have to do that anyway, but because I don't think its right for us to claim when we aren't entitled to and the government is trying to make cuts.

specialknickers Sat 05-Jan-13 23:07:17

What an effing shambles... I've just stopped mine, but I'm a sahm... Does that mean that I won't get a state pension? That's outrageous if so. I'd all up hmrc and ask, but I bet they don't even know...

Is it just me or does every one of the government's new policies seem like it's been hatched in an episode of The Thick Of It.

ConcreteElephant Sat 05-Jan-13 23:31:00

It is a shambles, so much confusion! but specialknickers the fact that you registered for child benefit should protect your stamp / pension. It doesn't matter that you won't receive the money any longer, as long as you claimed CHB in the first place you'll be fine.. I'm not a tax expert <disclaimer!> but that's my understanding of it.

HousewifeFromHeaven Sat 05-Jan-13 23:32:11

Thanks concrete

ConcreteElephant Sat 05-Jan-13 23:36:50

The difference between In the Thick of It and real-life policy is that In the Thick of It is amusing, while real-life is just tiresome and possibly has less swearing...

I'm rather looking forward to the return of Yes, Prime Minister now.

specialknickers Sat 05-Jan-13 23:37:17

I really hope you're right... To me it seems very unfair that sahms are penalised, when couples where both parents are earning (and have a higher household income) can claim thousands of pounds a year. But to lose one's pension as well really would be a massive kick in the teeth.

WilsonFrickett Sat 05-Jan-13 23:45:09

I've kept the claim but cancelled the payment - so NI is still protected by DP won't have to do any tax shenanigans. But he is well over the threshold so I know we'd have to pay it all back through his tax return - just stopping the payment makes it easier.

ConcreteElephant Sat 05-Jan-13 23:46:01

From the moment it was announced that cancellation of CHB would apply based on a single income rather than household income (meaning that a single income couple earning £61k would lose it completely while a dual income couple earning £98k between them would keep it) I think it was clear that this isn't the fairest of policies. It's ludicrous and has the potential to be an administrative nightmare, both for individuals and HMRC. I don't disagree necessarily with the aim of the policy but the means have been very poorly thought through. It's crazy.

roseum Sun 06-Jan-13 10:20:44

According to the advice I've read - if you want to protect your NI entitlement for being a carer of a child under 12 (e.g. if you are a sahm and aren't paying NI contributions through employer) BUT stop getting the child benefit payments because your OH earns too much, then you need to cancel the child benefit payments but remain registered for child benefit. However, I have yet to find anywhere on HMRC's website which explains how you go about doing this....

Don't forget that if you are close to the thresholds it is based on adjusted net income. So you can deduct pension payments and charitable donations from your earnings. Don't fall on your swords if you don't need to!

LIZS Sun 06-Jan-13 10:42:22

roseum all those currently claiming CB are registered so for those you just opt out using the online form - www.hmrc.gov.uk/childbenefitcharge/stopchbpayments.htm . Future births will need to be registered as at present but presumably an option would be added to not receive payment for them either.

As I said in another thread, HMRC won't tell my husband whether or not I receive CB because of confidentiality rules. So if he was the sort of man who withheld money from me and I was squirelling CB away in a secret account - how are HMRC going to get it back off him?

More than this I worry for women who do have husbands/partners who do as I describe above and are facing loss of the only income they have coming just to them.

But of course, we're women and worthless as far as the Tories are concerned.

Splatt34 Sun 06-Jan-13 12:06:13

I've had no notification despite being high earner and cb claimer. Am keeping it at moment as going on mat leave in May so income for 2013/14 will be below 50k. will self assess this year but TBH my tax has been all over the place Kthis tax year as had 3 employers and 6 tax codes (??!!) so i will find it easier to get it all straight than get a letter in 2-3 years saying I owe £x

Splatt34 Sun 06-Jan-13 12:21:18

The other thing is, if you are happy to do a tax return, is that the cb paid to you in April 2013 doesn't need repaying until Jan 2015. So if you can be disciplined not to spend it could sit in a savings account earning you interest for up to 20 months.

PoppyWearer Sun 06-Jan-13 12:34:56

That's my plan, Splatt34. It already goes into savings accounts, but now I'll put it in a separate account instead.

CogitoErgoSometimes Sun 06-Jan-13 13:58:11

"Why should you expect a man, who is not the father of children, to pay tax just because he is married to the mother!!!!!"

It's no different in principle to the same mother losing Child Tax Credits because she is now living with a partner... or Housing Benefit or Council Tax Benefit. You don't even have to be married for cohabitation to affect other benefits. When CB disappears entirely and is replaced by the Universal Credit, the problem will go away completely.

CogitoErgoSometimes Sun 06-Jan-13 13:59:39

" So if he was the sort of man who withheld money from me and I was squirelling CB away in a secret account - how are HMRC going to get it back off him?"

The responsibility to pay the correct amount of tax always rests with the taxpayer. Ignorance is no defence.

meboo Sun 06-Jan-13 15:14:45

ok, So where do I find my child benefit number?

Euphemia Sun 06-Jan-13 15:16:30

At the top of your child benefit letter.

ebersneezer Sun 06-Jan-13 15:30:06

Shit I can't find the number anywhere.

ebersneezer Sun 06-Jan-13 15:36:58

An, good. You don't need it for the online form, you do need NI number smile

if it gets paid into your account then the child benefit number shows on your bank statement (well most of it anyway) - I just used what was shown plus my national insurance number and it worked ok.

Glittertwins Sun 06-Jan-13 15:40:13

I already keep the CB in a separate account after they lost a load of account data. It is now automatically being shunted into an ISA. The interest earned on it will counter what DH will have to pay back at some point.

Just opted out, am pissed as I didnt receive a letter and was totally clueless about the whole bloody thing having had to be done by tonight, thankfully I have read through the threads here and all the queries I had were answered here so thank you all MNetters.

I couldnt find my CB number but it cancelled it anyway, had confirmation very quickly funnily enough.

I think they rused it through in the hope that will have forgotten about it by the next election, not a chance.

IrnBruTheNoo Sun 06-Jan-13 19:32:45

Have checked HMRC website but it's not very clear about this latest news...Anyhow, our household income is around £30k so it looks like we're going to be keeping child benefit. Thank goodness!

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