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Child benefit higher rate help?

(8 Posts)
Zorra Sat 09-Mar-13 17:59:46

Have looked through old threads on this, but struggling (as usual with tax issues!) to work out what applies in my case.

I am coming home from being non-resident for tax to have a baby and have been advised that I will be considered resident for the 2013-14 financial year and therefore have to pay tax. This is fair enough, but it also means that I'll be entitled to Child Benefit for DS (3.5) and DC (due in May 2013). However, I earn gross around 56,000 PA. I've looked up the HMRC advice which talks about net income - do I work out whether I pay over 50k on my post-tax income or pre?

And also, there is a strong chance my circumstances will change and I will stop earning (or significantly reduce) about half way through the year and would not therefore earn this amount anyway. This being the case, am I better to claim CB then pay it back through taxes if I am over the threshold? I guess if I opt out then actually earn much less I can't reclaim it?

Thanks! It's all making my head spin so am very grateful.

ChasingSquirrels Sat 09-Mar-13 18:01:18

£50k limit is gross.
Claim it and pay back through tax return.

Zorra Sat 09-Mar-13 18:04:15

Ah great, thanks smile

MrAnchovy Sat 09-Mar-13 18:33:22

"This being the case, am I better to claim CB then pay it back through taxes if I am over the threshold?"

Yes

"I guess if I opt out then actually earn much less I can't reclaim it?"

You can actually, but as your income will be less than £60,000 in any event you will be entitled to some CB (the charge is tapered between £50k and £60k) so claim it as soon as you are eligible and sort out how much you have to pay back (if any) later.

mercibucket Sat 09-Mar-13 18:39:40

I thought it was not gross! You deduct all your pension and charity payments, plus any tax deductible stuff like professional membership fees, and this gives you the amount that counts for cb purposes. So, for example, you could look into salary sacrifice via increased pension cntributions, or once the baby is born, childcare vouchers, to reduce your income for cb purposes.
Also, as it a sliding scale, it is still worth claiming even at 56000.

ChasingSquirrels Sun 10-Mar-13 22:20:25

Sorry - by gross I meant taxable, not post tax.

ceeveebee Sun 10-Mar-13 22:23:46

Just in case you aren't aware - if you have a DP or DH who earns over the £50/£60k limits then you/he would have to repay some/all of the CB claimed even if your own income falls below the limits

Zorra Mon 11-Mar-13 12:22:31

Thanks everyone - ceeveebee, no DH so no problem smile

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