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Child Benefit

(6 Posts)
germainebeer Thu 05-Sep-13 20:14:23

I'm sure this has been done to death on here, but I just wondered if somebody could tell me how the changes to Child Benefit work? I thought I was still entitled to it, but we have received a letter this week suggesting the opposite...

riksti Thu 05-Sep-13 20:18:44

If you or your partner earn more than £50,000 after pension contributions then child benefit will be withdrawn (1% of CB is to be paid back for every £100 the higher earner's salary exceeds £50,000). In 2012/13 tax year the withdrawal would be minimal as only CB received between 7 Jan and 5 Apr is taken into account for this calculation.

InMySpareTime Fri 06-Sep-13 12:54:45

We got the letter too, as far as I can tell they've sent it to all higher rate taxpayers, even those far below the 50k threshold.

Lonecatwithkitten Fri 06-Sep-13 13:09:52

You can claim child benefit and then fill in tax return a repay it. I am doing this as my income fluctuates widely. This year my declared income for tax will be below £50,000 so will get to keep it all. Last year I would have lost it.

germainebeer Fri 06-Sep-13 15:35:58

Thanks everyone. Does it take into account any other deductions after pension, such as childcare vouchers?

riksti Fri 06-Sep-13 17:05:33

Childcare vouchers are already deducted from your salary (the tax-free portion anyway) so the amount on your P60 is net of childcare vouchers

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