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Will we lose all of child benefit payment?

(75 Posts)
Snugglemonster84 Fri 24-Jan-20 14:27:34

Aibu to be completely confused? My husband is about to get a paryrise and will earn 52k plus a 5% bonus.
I thought when you hit 50k you lost your child benefit, it just stopped. I've been reading and discovered it doesn't stop, my husband will have to pay it back in tax.

Does anyone mind who earns similar telling me how much you pay back at this salary?
Which would be the better option for us?
1. Stop recieving child benefit to keep things simple or
2. Still recieve it, inform them so tax code changes and husband pays it back (or some of it)

Ive also read that you have to complete a tax return? We haven't a clue how to do this as he's just salaried and why do you need to do that when you've informed them and the tax code should be altered accordingly?

alifelived Fri 24-Jan-20 14:29:10

You will pay a higher rate of tax on it.

Still worth keeping it as you’ll get something from it.

YippeeKayakOtherBuckets Fri 24-Jan-20 14:29:55

Yeah it’s a mess.

But you won’t lose it all, or even any of it depending on pension contributions. You’ll still keep the vast bulk of it. Definitely keep claiming it.

It’s a very simple tax return that you can do on line and they will claim back any overpayment through his tax code.

BakewellTarts Fri 24-Jan-20 14:30:06

You will probably get around 80% of child benefit as I think it tapers off up to £60k.

We decided to keep it and repay the tax. I think you should be able to alter the tax code but if you have to complete a tax return it really isn't complicated.

alifelived Fri 24-Jan-20 14:30:27

And yes you should complete a Self Assessment Tax Return. Should be easy if he’s paye as this will pre populate on the return and then you just declare the CB and it will give you a figure that needs to be paid.

eleflump Fri 24-Jan-20 14:30:44

There is a calculator to work out how much you would need to pay back:

www.gov.uk/child-benefit-tax-calculator

poppy1973 Fri 24-Jan-20 14:31:56

We are in the same situation. However, I am going to keep it going as I believe it helps to pay for your NIC if you don't earn enough yourself, until the youngest child reaches 12. A tax form is submitted and they tell you how much they need to reclaim and will deduct from partners pay (tax code), I believe.

BlackBlueBell Fri 24-Jan-20 14:34:12

It’s still worth keeping it as they won’t tax the whole thing away, just a percentage of it, so you’re still getting money to keep.

HeyMac Fri 24-Jan-20 14:34:58

Does anyone know if, the same way your pension is taken in to account, are your childcare vouchers too?

Judashascomeintosomemoney Fri 24-Jan-20 14:35:02

Do you work atm, or are you a sahp? If the latter then it’s best not to choose to stop receiving CB (even if you were no longer entitled to any of it) and ‘pay’ it back via tax as it means your personal NI contributions are intact for the period of not working.

Success1986 Fri 24-Jan-20 14:36:58

We are in the same boat. So yes you are supposed to send a tax return back every year to state earnings then you are required to pay back 1% of CB for every £100 over the threshold (think that's 47,000). Anyway we didn't realise of course in our baby bubble as friends told me everyone was entitled (which in a way they are) but we just got billed we have to pay back everything because my husbands over time took him well over the threshold. So work out what you will be entitled to and send the tax return in paying some back if applicable, stop claiming if its not worth your while, or claim and put into a high interest savings account and earn money on the CB keeping in mind you will owe a certain amount back. Hope this helps xx

OnlyFoolsnMothers Fri 24-Jan-20 14:37:34

By January 31st 2021 your husband will need to complete a tax return
for April 2019-April 2020 and he will pay a proportion back to HMRC.
I have been storing my CB in a separate acc as I earn under 50k but get a bonus in January that takes me over my limit. I kept it incase my bonus didnt come through.

TankGirl97 Fri 24-Jan-20 14:39:46

Definitely worth continuing to claim it. If one of you earns between £50k and £60k you still keep a percentage of it. Over £60k and you have to repay the whole lot.

It's easy enough to do a self assesment tax return online. Just be sure to do it as HMRC could fine you for not declaring.

Logistria Fri 24-Jan-20 14:40:41

The link to the calculator that tells you how much will have to be repaid is on this page:

www.gov.uk/child-benefit-tax-charge

He has to do a tax return because he's on the list of people HMRC requires a tax return from.

Logistria Fri 24-Jan-20 14:41:59

Direct link: www.gov.uk/child-benefit-tax-calculator

LemonySippet Fri 24-Jan-20 14:55:39

We think from the calculator that DHs bonus will take us over the threshold for the first time, and we'll have to pay half of it back. So we've been putting half of it aside into a separate account so we weren't shocked when the tax return was due! It's a whole new ball game for us, we've been very low earners for years and years.

Snugglemonster84 Fri 24-Jan-20 14:56:17

Thank you so much for that. I understand more clearly now.
So you don't have to inform anyone of anything, you just fill in the yearly self assessment form?
And also any payments you make into your work place pension you deduct?

Snugglemonster84 Fri 24-Jan-20 14:57:41

And also, once you submit the form, do you have to pay back the whole chunk immediately or is it spread out over the year and taken each month from his wages? The calculator says we will owe 250 pounds

OnlyFoolsnMothers Fri 24-Jan-20 15:00:37

Yes you include your pension details, if he made higher pension contributions you would be entitled to more of the CB

Gruffalosandbuffalos Fri 24-Jan-20 15:02:05

If his salary is £52k you need to deduct his pension contributions and any childcare vouchers from that. If the amount is now below £50k you don’t need to do a self assessment.

My DH earns £54k but we still get full child benefit and don’t do a return as his pension and vouchers drop his salary below.

Lolapusht Fri 24-Jan-20 15:04:49

You can also claim but decline the payment so you still get the NIC contribution to your pension. Means that you don’t have to worry about tax returns or paying anything back.

Ilikemyteaweak Fri 24-Jan-20 15:08:17

We are having to pay back our child benefit this year too. We are having a terrible time trying to do it. My DH went online to fill out a self assessment, it said we would get a number through the post and we have never received it. My DH called the inland revenue and they have said it will come through the post within the next 2-3 weeks and I’m worried incase we are going to be penalised for it being late!

redastherose Fri 24-Jan-20 15:16:51

Not sure if anyone has already mentioned but are you a SAHM? Really important for you to know that if you are then the receipt of Child Benefit gives you credits towards your NI and ultimately your entitlement to pension so you are always better off claiming it. I believe that you can opt out of receiving the payment once you get to the maximum but still receive the NI credits. Make sure you do that if you don't work.

zebra22 Fri 24-Jan-20 15:25:07

Pensions are a bit of a red herring. This is only relevant if the deductions are made from net pay, which is unusual

zebra22 Fri 24-Jan-20 15:27:12

Also you have to register for self assessment by 5 October if you’re not already completing a tax return

If you owe less than £3k and file by 30 December you can ask for the tax code to be amended to collect the tax owed

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