Child benefit tax

Just because you are a sahm, doesn't mean you can't read the news - it's been like this for 10 years. It's adjusted income after pension is taken out, and that needs to be over £60k to get nothing but the sahp can elect to receive the child benefit but the other parents tax code will be altered to allow for that. They just need to complete an annual tax return which most higher rate tax payers will be doing anyway if they may any charitable donations each year. Its not onerous

I apologise I stand corrected. Thats a very wishy washy criteria. How on earth do they check that someone's relative has spent over the child benefit amount on the kids?

I continued to claim it when the rules changed because I figured it would be less hassle than reinstating if I went back to part time. I make sure I save it so it’s there ready to pay back, so I get a little interest too.

If I was a SAHP I’d definitely take it. It was originally universal so that the mother always had some money even if her husband drank it all away (or whatever).

It’s annoying the threshold hasn’t changed in 10 years. £50k in 2013 money would be £72k now.

Also surprised you didn’t know about this. Maybe those who were parents at the time of the change are more likely to be aware.

For all those doing it for pension contribtions, you can claim it at a nil rate. Ie you get the pension credit but you don’t get the child benefit so there is nothing to repay. In our area they want to see child benefit as proof of parental responsibility for primary school application which means everyone has to claim it at the nil rate if they are higher earners so they have something to use for school applications.

You'd think everyone would know but if there is someone else out there who doesn't it's good that they might see this thread

I dont think it is benefit fraud tbh
Eligibility criteria:

Only one person can get Child Benefit for a child.

You normally qualify for Child Benefit if you’re responsible for a child under 16 and you live in the UK.

You’ll usually be responsible for a child if either:

• you live with them
• you’re paying at least the same amount as Child Benefit (or the equivalent in kind) towards looking after them - for example on food, clothes or pocket money

No.

But there is an election coming up, so get ready for dozens of threads like this.

Are you sure that's the child benefit itself?

How do you not know about this? It's hardly new

I’ve just had to do a tax return and now I have to pay back about £1.2 k

the threshold needs raising as we are barely surviving. Mainly because DH is currently unemployed.

i have colleagues and their partners that each earn just under the threshold and are comfortable. They still get child benefit.

No it is benefit fraud. You can only claim child benefit if you are responsible for bringing up the child. So a grandparent could claim if the parents aren't on the scene but they cant claim just because they do school runs and babysit them etc.

@hellonnme if you're a sahm it would be better for you to claim the CB so you get the NI credits. You can either claim and opt out of payment or get the money and then the higher earner would have to pay back some or all of it via a tax return

Actually that should be SAMP as it would apply to the man to if they are at home.

Is it actually possible and OK to do this? I am the higher earner and so we don’t claim CB but my DM, who also lives on the same road, does an awful lot for my 2 DC when I’m in work - school runs, dinner etc. and I would love for her to be able to claim it for them as I can’t.

Op if it's you earning the £60k and your husband also has a full-time job then just cancel it. The benefit for state pension is only really for SAHM as they won't be making any NI contributions. But when your working you are doing that anyway so you just won't need to claim it.

Seems ironic to be complaining about underfunding of nhs etc while contributing very little and ultimately taking benefit against the rules - if it bothers you so much then go back to work ?

So you’re financially savvy enough to read the Financial Times, but didn’t know about Child Benefit rules?

Have you been living under a rock? You can still get the NI credits by registering, then opting not to receive the benefit.

Usually advisable to take it. Better to have some CB than none and the tax return takes less than 30 mins to do it’s not really a huge chore.

I found them a right pain in the arse that I didn't need, and all of it was being paid back.

Firstly this is bonkers ae you are claiming money you aren't technically entitled to and if your mum claims it and you are a SAHM you won't be getting your pension contributions for yourself as that's the whole point of you claiming it and not getting the money.

@What0nEarthIsThis I did know about this when it first came out but DH salary wasn't high enough to worry about it at the time. We luckily just caught it again recently and have had to do 2 years back pay to them, we haven't had to pay a fine just a small amount of interest on the first year we missed.

We both think it's ridiculous that it's on a single salary, but the government's tax and benefit system isn't linked in any way and they have no way of doing it on a joint income. I guess it would cost them a lot to set that up. But it would be more fair that way.

Usually advisable to take it. Better to have some CB than none and the tax return takes less than 30 mins to do it’s not really a huge chore.

Yes I know. When DS was born DH wasn’t working due to illness so he got the child benefit which protected his pension contributions and as I earn over £50k I do a tax return. DH went back to work after a couple of years but he still gets the CB and I still do a tax return. It’s quite straightforward and it helps (usually but not in our case) Stay at home mums protect thier state pension

I'm surprised you didn't know about it.

It was all over the papers and all over MN at the time.

I know about and I don't receive CB anymore.

Don't take the money, as you'll end up doing a tax return and pay most of it back.

The higher earning spouse reports it, even if the other spouse receives it.

Pension contributions are usually taken in account which does slightly help the situation.