Earning 52k and child benefit?

[pippapips7]

We get the £87 a month child benefit for 1yo. When we applied, DP earned 40k and I earned 15k pro rata and it came in really helpful. DP got a promotion in January and now earns 52k (as did I and increased my hours but nowhere near this mark). At the time I made a mental note to check out what this means for the child benefit but it just popped into my mind yesterday. Will we no longer be entitled to it? I've had a look online but can't get a simple answer and a bit confused. Not sure if it's easier to just cancel rather than get a bill through to pay it back? Just hoping someone who has had a pay increase from under 50k to over 50k and received child benefit can shed some light on this?

Im not sure why that matters…but thanks!

Cycle to Work definitely reduces the income but not sure about student loan repayments.

Ok thank you that is very good to know. When I look on my tax gateway account it seems to just show what my gross salary should be for the year and how much tax I should be paying - is it only my payslip which shows deductions etc?

Trying to work out if I can bring my income below £50k before the year so I can keep the CB but not sure what the current figures really are - have student loan, pension, cycle to work scheme, medical insurance, child benefit and some overtime factor into things. Is there someone I should be looking?

Trying to bring an income under £50k to claim £87? is that £87 so needed?

It is when everything has gone up by much more than £87 a month and you're sinking deeper and deeper into overdraft.....

What a totally pointless comment to make.

If you log in to the HMRC app and go into the PAYE section, at the bottom there is “total taxable income”

this figure is what will be on your P60 in April.

it should be on your payslip too but I find the HMRC app much clearer.

My understanding is it’s that figure that is used for CB, tax band etc.

so I am due some overtime. Depending on when HR process it I may be under or over the 50k taxable income. My plan is to check after march payday and if I’m over, pay the difference into my SIPP, then do a tax return for the following Jan.

I'm referring to comments of put more in your pension, why? keep
what you need to live on rather than saving and sidelining money to claim £87.

Because I’m mid 50’s and would like to retire sooner than later?

because it’s not just £87. Anything over 50k will reduce child benefit, but will also be subject to 40% tax. If I put it in my pension I get tax relief, don’t get CB cut.

Medical insurance is a benefit so if your employer pays it's added to your income.

Salary sacrifice cycle to work will reduce income for this purpose. As will pension contributions whether Sal sacrifice or not.

Student loan payments are just like tax so you need to ignore.

To the other poster, how is this helpful? It's an arbitrary limit which hasn't been reviewed for years in line with crippling inflation. Doing what you can to get the benefit and saving for future retirement is entirely legal, moral and sensible.

You can do that? Do you know if there is an upper limit on the amount you can pay in? Surely people would just fiddle the system otherwise? I stopped claiming years ago but didn't think about paying more into my pension.

Yes you can pay in more - up the annual allowance (used to be 40k).

It's not fiddling, it's to encourage people to pay in more where they can. Which based on recent news about the pension age is no bad thing!

If we're talking about need, your posts are hardly necessary either.

@OrangeMarmaladeOnToast
I wasn't aware we were only to post if in agreement, oddly it's an open forum where all opinions can be heard.

This. Just stuff it into pension.

It’s not worked out on your headline salary, its
after pension etc have gone and it is taken over £10k of income so until he’s earning about £62+ you will get something but he will need to do self assessment. There is talk of raising that £50k in the budget so I wouldn’t cancel the claim until he’s approaching £75, even if you pay it all back.

Which ever one of you claims child benefit.

Pay additional pension.

All opinions including ones you don't like. If you're going to wade into a thread asking for practical tips with your unasked for views about need, the flipside to that is the mirror can be turned back to you. No double standards here.

Because people often come onto an old thread when it is in active and answer the original question, not one posted 3 pages in.

Hth.

ok… and often (like on this case) someone posts on an old thread and the conversation continues.

Both will need to do tax returns if they’re earning over 50k.

CB reduces if either parent earns over 50k, not just the one claiming.

so if you’re a sahm claiming cb, but your dh earns 75k, he will need to do a return.

It's still worth claiming. Pension will take it down. And even then you still get most of it until you earn quite a lot more.

He needs to start doing tax self assessment.

@caringcarer you are incorrect
Whoever earns the highest amount does the tax return regardless of who claims the child benefit. Only 1 person does the self assessment for CB prposes and that would be the highest earner.

Have you noticed that more posters are answering the original question, thus wasting their time, than your new question?

anyway, sod it. Hiding the zombie thread now.

Both do not need to do a tax return for repaying CB. Only the highest earner would complete the return even if both earned over £50k (unless they both earned over £100k as then I think you need to complete one anyway)