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Child Benefit Charge - Questions in a Muddle

(5 Posts)
meggles Thu 13-Dec-12 08:42:28

I receive a letter explaining that if either partner earns > £50,000, we need to stop getting Child Benefit OR declar the payments for Tax Purposes. Problem is, I can't figure out if we make > £50k.

Me - employed, and earn £42K in the UK + £3k bonus + £4k in the US + £4k in car/fuel/medical benefits. I think the salary + bonus count towards this, but does other benefits? If so, I am JUST over the threshold at £53k

Then there's my partner, who's self employed in a partnership. How do I determine what his income is? Is it their profits divided in half?

LIZS Thu 13-Dec-12 08:50:06

I think advice for anyone uncertain would be to claim and send in tax returns. Payments in kind do count however if you pay into a pension fund that can be deducted so you may be lucky and not have to repay anything , or you may not.

meggles Thu 13-Dec-12 08:54:23

Thanks -

looking online, it says that whoever has the highest income must declare child benefit on tax return and pay £X.

When I'm working full time, I think I make more. However, I've been on Mat Leave since Feb 2012 - Feb 2013, and have obviously made much less than Partner.

Would Partner claim this year, and then me next year (assuming I go back to full time work at previous level?)

CogitOCrapNotMoreSprouts Thu 13-Dec-12 13:00:44

Why not carry on claiming the CB as you do no but both of you submit self-assessment tax returns next summer. You will then know, year to year, which of you earns the most. The CB is clawed back on a sliding scale.

losingtrust Thu 13-Dec-12 20:46:51

Your p11d benefits and bonus will count towards it as they would be declared in a tax return. With bonus I am just over but going to sacrifice the bit over as a pension contribution. Would rather have it go into pension than lose cb.

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