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Child Benefit Changes: New partner higher earner

(10 Posts)
carpetsw33per Wed 31-Oct-12 17:23:17

My ex and I have the children 50/50. I claim Child Benefit so as to remain the Resident Parent (he tried but failed). I do not claim maintenance from him as I wanted to cut all financial ties.

My new partner is a higher rate tax earner (just) but his take-home is only 40% of that and he has a lot of maintenance payments to his ex-wife and school fees (although we also have his children 50% of the time, but he is not the resident parent).

My understanding is that he will have MY Child Benefit deducted from HIS salary. Is this right?

I'm so gutted! I would NEVER ask him to support my children and don't know what to do. I was currently saving their Child Benefit in an account to pay for christmas presents etc. and stuff that is just for them. I don't earn very much money but I have always paid for my own kids. Now I feel as though I am going to have to pay my Child Benefit to their step-dad, who is also really struggling because of his commitments to his kids.

I'm gutted - is this all correct?

riksti Wed 31-Oct-12 18:11:03

It would be deducted from him if his income after pension contributions and gift aid is over £50,000. So it doesn't affect all higher rate taxpayers.

Rockchick1984 Wed 31-Oct-12 22:55:11

If you are choosing to live together as a family unit then yes, he will be expected to be contributing to the family home which will include paying towards things for your child.

If he is struggling financially he needs to look at how much he is contributing to his ex and children - if he cannot afford school fees this is something he needs to take up with his ex, and if he has the children 50% of the time he shouldn't be paying much maintenance, has it all been worked out through CSA?

MrAnchovy Wed 31-Oct-12 23:58:33

If he is only just a higher rate tax payer, he presumably has taxable income of less than £50,000 so he will not be affected.

CogitoEerilySpooky Thu 01-Nov-12 06:43:05

It's the principle of benefits. If he was a lower rate taxpayer and you were claiming CTCs, Housing Benefit or Income Support etc., you'd find your awards were reduced and he'd be expected to pick up some of the tab as part of a cohabiting couple. That's how benefits work....

purpleroses Thu 01-Nov-12 06:56:10

It it is correct. I'm in the same position as you but have just stopped my child benefit claim and my ex is going to claim instead and increase the amount he pays me each month.

If you trust your ex (and he isn't a high earner nor living with one) you could do the same. He does NOT need to be the RP to claim as long as he supports his DCs financially by as least as much as the CB. But if things are difficult you might place yourself in a weaker position if your ex ever fights you over residency, which school they go to, etc

CogitoEerilySpooky Thu 01-Nov-12 07:07:26

BTW.... does this reluctance for your new partner to pay towards the DCs mean that you won't be expecting him to pay towards groceries, rent, bills and the other costs of running the household?

carpetsw33per Thu 01-Nov-12 14:19:08

Because ex and I have fifty-fifty childcare, the CB is the thing that determines resident parent status, according to my solicitor.

My partners maintenance etc was agreed through a solicitor who was a friend of his ex-wife so it is ridiculously generous. I don't want him to contribute to my children because I don't want to contribute to his, who go to private school etc.

My CB has gone into savings for my dcs university funds. We do struggle (living in rented and we aren't young!) and this was the only way I could save for them.

I don't really trust ex-h but if he has the CB he will save it for the children. It just really hurts that I will have to give up my right of Resident Parent. As their mum I always held onto this and it made me feel less guilty/shit about the 50/50 residency. But I don't see what my option is.

carpetsw33per Thu 01-Nov-12 14:22:05

(I sound slightly unhinged about partners maintenance. I think it is ridiculously generous but partner just wanted a clean break and really didn't care. He is crap with money by his own admission... smile)

purpleroses Thu 01-Nov-12 22:34:26

But if you have them 50-50 you presumably have shared residency don't you? But whatevet arrangement you have does not legally alter by who claims CB. It's the other way around. If you both try and claim CB then the one with main residancy gets it. But claiming it doesn't create any automatic residency rights.

It could be added amunition if your ex was ever to argue the 50-50 wasn't working and they'd be better off living with him though. So depends if you think that's a possibility. If you do then keep claiming and pay it to your DP for his tax return. If not then you could let your ex claim and save if for the DCs.

Nothing to feel shit about sharing kids 50-50 with your ex. You're still their mum.

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