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Child benefit over £50k

(37 Posts)
childbenefithelp Wed 22-Mar-17 23:49:05

DH has recently been promoted and will earn exactly £50k gross PA.

I don't work due to illness. I look after our 2yo and I'm currently pregnant. I claim PIP and Child Benefit. I'd like to claim ESA but have been putting it off for various reasons. Not really relevant!

I think I need to keep claiming CB for my National Insurance credits - is this correct? I've heard vague things about having to pay more tax if you claim CB - does this happen automatically or does DH have to do something himself?

Can I claim CB for the new baby? It's important to me to have these payments into my own bank account, because I don't like asking for "pocket money" or an allowance, if you know what I mean. It's important to me to be able to take the children out by myself and pay for things for them myself.

We are fucking clueless, never dreamt we'd be in this position of earning such a high amount. Explain it to me like I'm an idiot, please! Thank you smile

HelenDenver Wed 22-Mar-17 23:55:15

Yes, you can claim CB for the new baby

It's a tapered reduction between 50 and 60k so you may not "lose" any. The best thing is that you claim it and DH repays any proportion of it later by his tax return

AndKnowItsSeven Wed 22-Mar-17 23:55:23

Your dh just needs to put extra in his pension so he earns less than £50k just an £1 a month is fine.
Then you claim CB as normal and you will get NI credits until your youngest dc is 13.

HelenDenver Wed 22-Mar-17 23:56:34

But, hmmm, do you have access to a joint account or does he transfer money to your account? You should have more than your benefits to take the children out with!

AndKnowItsSeven Wed 22-Mar-17 23:56:46

Actually thinking about it £50 k gross will be less than £50k with pension anyway so you don't need to overpY.

childbenefithelp Thu 23-Mar-17 00:04:41

Yes DH does transfer money to me, we don't go short, but psychologically it's important to me to have this money coming into my own bank account that I don't have to ask for/remind him to give me, if that makes sense?

Thank you for the quick replies, it sounds positive.

avamiah Thu 23-Mar-17 00:05:48

It's only roughly £20 a week is it not?
If your husband is earning more than £50k then you shouldn't in my opinion be worrying about benefits.

childbenefithelp Thu 23-Mar-17 00:08:45

It's NI credits I'm most concerned about, ava. I don't claim anything I'm not entitled to.

HelenDenver Thu 23-Mar-17 00:08:56

Of course you should claim CB if you are entitled to it - it also keeps up your NI "credits" in some way.

avamiah Thu 23-Mar-17 00:21:40

If your entitled to CB then of course you should claim it.
I'm just saying that you shouldn't have to worry about it.

PhilODox Thu 23-Mar-17 00:41:37

Of course, ava, noone on an income over £50k ever has money worries, do they? hmm
Maybe houses are free where you live? People on £50k plus do pay tax...

The OP needs to ensure she gets NI credit. She also needs to protect herself financially, as she has become disabled.

5OBalesofHay Thu 23-Mar-17 00:52:05

You should claim and dh will need to declare on self assessment form but it will keep your contribution record up to date. I can't believe they have set the cut off the way it is. 50k doesnt exactly mean loaded and if you both earned 49k you'd keep it. One earns 50 and the other nothing you lose it.

avamiah Thu 23-Mar-17 00:53:24

PhilODox,
If you post a thread on mumsnet then you are going to get people's opinions , some you agree with and some you don't .
And No houses are not free anywhere whatever your circumstances are.

HelenDenver Thu 23-Mar-17 06:44:14

"One earns 50 and the other nothing you lose it."

That's not correct. The repayment via tax return is tapered between 50k and 60k.

Also, as a PP said, making a pension contribution of salary over the threshold can mean no repayment is due.

I do agree that the household vs individual income distinction is a bit bizarre!

Underthemoonlight Thu 23-Mar-17 06:49:23

Surely you should have access to money without having to ask your husband do you not have a joint bank account?

ohforfoxsake Thu 23-Mar-17 08:32:01

The financial set up within their relationship isn't the issue here. Don't ask the OP to justify herself.

childbenefithelp Thu 23-Mar-17 08:46:06

We live in the SE of England. I realise DH might not earn that much if we lived elsewhere, but we also wouldn't be paying over £1000 a month to rent a crappy two bedroom house that's falling apart. He hasn't started earning £50k yet, we are not well off, we have no savings. He has worked very hard supporting me and DC since I had to stop working (I've had short periods of employment during our relationship but not of any significance), and he deserves the pay rise. We never expected to be in this pay bracket - we've both come from nothing.

I hope that now he's earning more we can save for a shared ownership deposit and be a little bit more secure and maybe better off.

My disability is mental health related, and it affects my ability to feel comfortable asking for money. He is not financially abusive, and he doesn't leave us short, but that's the way it is.

Right, justification over.

Thanks so much for the really helpful replies. Does DH have to do this self-assessment thing himself, separately from work, or does his company do it automatically through PAYE?

Ratbagcatbag Thu 23-Mar-17 08:48:40

I have just tipped over £50k gross and I thought I'd lose some. However by using the calculator on the government site it seems to take into account pension and my childcare vouchers.

If he's just on £50k but pays into a pension you may not lose any and don't need to do anything is my understanding. (I'm sure I'll be advised if I'm wrong).

Ratbagcatbag Thu 23-Mar-17 08:52:48

Ignore me. I've just redone it and I lose £32.

theresamustgo Thu 23-Mar-17 08:56:56

Your DH has to do self assessment tax return by end of January for the previous tax year. He gets a Unique Tax Reference number and gets billed through that, to pay back any excess owed by 31 Jan. It is a horrible faff, but I do it, because we are part of the taper.

Ratbagcatbag Thu 23-Mar-17 08:57:24

Oh god. I give up. Now I've done my proper childcare voucher for the year it means I now owe nothing again!!

Anyway it takes into account the cycle scheme, additional payments into pension pot (but not those before tax), childcare vouchers, gift aid donations and some others. Go and have a look at the calculator and see if it impacts you. smile

theresamustgo Thu 23-Mar-17 08:57:56

Oh yes, you should check what exactly the earning limit is for CB. I can't remember.

BeyondThePage Thu 23-Mar-17 09:03:09

We are in the taper zone - sometimes...

DH now does a tax return and last year we had to pay back £232 - from the £1700 odd we were given in child benefit for 2 for the year - so it was well worth continuing to claim. It also protects your NI credits towards your pension until your youngest child is 12.

Jumpolining Thu 23-Mar-17 09:03:53

So if my DH pays more into his pension and we already take maxim childcare vouchers, we should still get the CB? I still claim- his tax code is affected. What gross/net income is the optimum?
Thanks

Jumpolining Thu 23-Mar-17 09:06:32

*maximum

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