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daft question about self assessment/child benefit.

(35 Posts)
DameDiazepamTheDramaQueen Mon 10-Feb-14 11:04:09

We had to opt out of receiving child benefit because Dh is a higher earner.

Did the self assessment took flipping agesgrin but what now, does Dh stay on self assessment forever or just until next year when he goes back to normal? He's still being taxed as normal.confused

If anyone knows, please explain slowly as if to a very small childwink

Thankssmile

DadDadDad Mon 10-Feb-14 11:39:53

I'm a bit confused - if you stopped receiving CB then you didn't need to start SA. Now you are on SA, I expect you will find that the HMRC will continue to send a tax return in future and you will have to complete it.

What can happen is that after a few years of that, if your tax affairs are straightforward (eg all the tax is being collected via PAYE and there's no further tax to pay or be rebated), the HMRC write and say "we're not going to require you to complete a tax return in future". That's what happened to me, until the CB change came in, and I had to start SA again to repay the CB!

I prefer for us to receive the CB and then pay it back via tax, because in the meantime we have the money and can earn a bit of interest on it...

LIZS Mon 10-Feb-14 11:42:50

You SA until HMRC tell you otherwise, usually after a couple of nil to pay returns Most HR tax payers would anyway as investment income, interest etc is normally only deducted at lower rate.

DadDadDad Mon 10-Feb-14 11:56:30

See www.hmrc.gov.uk/sa/need-tax-return.htm

Quote:

If HMRC has asked you to complete a tax return and you've checked the information above and think you don't need one, call the Self Assessment Helpline. They will tell you whether you still need to complete a tax return.

So if all your tax is being collected via PAYE, you should be able to call HMRC and persuade them a tax return is not required in the future.

TalkinPeace Mon 10-Feb-14 14:19:06

if you were not borderline, why did he do a return?

DameDiazepamTheDramaQueen Mon 10-Feb-14 15:12:02

We were border line,I think there was the difference of £100 iirc. We filed the return and had to pay back 55 quid.

The reason being is that we didn't opt out by the deadline, we thought we would be informed by letter, so went way over the cut off point.

OK, thanks, makes sense that we do another one and there will be nothing to pay then. God, the thought of having to do it all again drives me to despair, it took 4 attempts for them to send a code that would work so we could log on and do it on line!grin

DrownedGirl Thu 13-Feb-14 19:59:02

If you only had to pay back £55, then shouldn't you still be claiming the cb?

DameDiazepamTheDramaQueen Thu 13-Feb-14 20:14:56

I thought we had to opt out because Dh earns too much?confused everything I read pointed to us having to opt out...

LauraBridges Thu 13-Feb-14 21:02:43

Why did you only have to pay back £55? Perhaps you stopped the CB almost as soon as it started being withdrawn but not exactly immediately.

You can claim back tax on pension contributions and on charity contributions on the tax return each year if you make any so you might find you get a tax refund sometimes.

DameDiazepamTheDramaQueen Thu 13-Feb-14 21:19:48

We left it really really late, we've only just done it. We put down gift aid, pension contributions etc. Then we had a bill and paid it immediately.

ihatethecold Thu 13-Feb-14 21:38:44

You should still claim it to protect your national insurance payments if you have ever been a sahm.

DameDiazepamTheDramaQueen Thu 13-Feb-14 22:28:21

I don't work but ds is over 12 so it's non applicable.

God, I'm confusedconfused thanks for the replies thoughsmile

CogitoErgoSometimes Fri 14-Feb-14 06:07:30

I fill in a SA return every year even though I'm on PAYE because, at various times in the past, I've had problems with tax codes that have led to me either owing large amounts of tax or claiming refunds. So I use some software called TaxCalc to complete the return every year and then I know I'm all square. Recommend the software.

ihatethecold Fri 14-Feb-14 07:47:17

If you don't work dame then it's even more important that you claim it then pay some back to protect your future state pension.

LIZS Fri 14-Feb-14 07:53:38

but you only get the credits until the child is 12 . You can claim it (to protect ni etc until then) and opt out of payments.

TalkinPeace Fri 14-Feb-14 08:19:27

Child benefit is until 18 not 12

tribpot Fri 14-Feb-14 08:23:13

Sounds like you're better off doing the return, OP. Doing the return is a pain but it does get a lot easier, esp after the first time when you realise what info you need to collect during the year to make it simpler to complete when the time comes.

You won't need to get new online codes next year, so that admin hassle is out of the way too.

DameDiazepamTheDramaQueen Fri 14-Feb-14 08:26:42

The protection is only until the child is 12 though, right? I was going to look into voluntary NI contributions.

Tribot - that is reassuring! Tbh it was getting the codes etc which was a hassle, it took sooooo long for them to send us one that worked. I had no idea you could be PAYE and self assessment, that doesn't make sense to me.

Weegiemum Fri 14-Feb-14 08:27:20

We still claim, I have a very small part-time income but dh earns over £100k. We claim to protect my home responsibilities protection for a state pension (though I think that stops when dd2, now 10, turns 12). It then gets clawed back from dh's tax. The forms are horrific - an accountant dies them for us!!

DameDiazepamTheDramaQueen Fri 14-Feb-14 08:29:57

I thought as ds is now 12 then we had to opt out. Ffs sad Im sure I read you can opt back in at any point though?

TheDoctrineOfSnatch Fri 14-Feb-14 08:31:31

You won't need a new code for next year though.

Splatt34 Fri 14-Feb-14 08:33:06

Does DH earn over �60k AFTER pension contributions? If not you should continue to claim child benefit. Even if he does you can still claim.

If his taxable pay is between �50 & �60 k you will pay a proportion back through self assessment. The fact you only owed �55 this year makes me think you are entitled to keep some of your child benefit.

FWIW I earn over �60k but continue to claim. The child benefit will then sit offsetting my mortgage for upto 20 months when I will repay it through self assessment.

DameDiazepamTheDramaQueen Fri 14-Feb-14 08:33:22

Thank Goodness snatch [grin}

DameDiazepamTheDramaQueen Fri 14-Feb-14 08:34:46

He earns £59,800 gross before anything taken off.

DameDiazepamTheDramaQueen Fri 14-Feb-14 08:35:46

Splatt - if that is the case, then now what should we do? I know I should ring the help line

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