Child benefit and DH’s ExW

[Willowthecrisp]

So DH’s wage is about to go over £50k so that means we have to stop child benefit payments for our children (or pay the charge). We also have DSS and his mum claims child benefit for him. We have 50/50 custody and in theory split costs equally but we do pay more more extras such as branded trainers etc than ExW.

Does this affect what ExW can claim? I had assumed not but I can’t work out if this wording on HMRC website means it does:

‘someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep’

I’m thinking it doesn’t but want to be sure. Would rather not have to announce to her that DH’s earnings have gone up.

I think so long as she is considered the resident parent she gets to claim the child benefit. It’s very tricky to navigate the guidance when 50:50 and I wish they would update it as this is such a common pattern now.

No - exw child benefit is only concerned by the claim for her kids, not yours with dp

Unless your DH annual salary will be above £60k, don’t stop claiming CB. It works on a sliding scale so if he earned £51k, then 10% would need to be repaid. If he earned £55k, 50% would need to be repaid. Any pension contributions would also be deducted before his annual salary was worked out so even if he earns over £50k, his pension contributions could bring his overall total under the threshold.

This is the problem. I’m not sure that she is the resident parent. It’s a pretty equal split. DH does pay a small amount of maintenance every month if that makes a difference. He doesn’t have to but I think they would struggle without it.

This is good to know. Thank you. I’m not sure what the raise will be exactly so I’ll find that out before I go cancelling anything

It's only worth cancelling if he earns over £60k after pension contributions are deducted. Otherwise you may as well claim, as you get to keep at least some of it.

Ex wifes claim has got nothing to do with you or your dh.

If you think she isn't entitled to claim cb because your dh is the main carer then go ahead and put in a claim. The government can decide who is going to get it.

@CCL333 is absolutely right, make sure you don't cancel if your DH is earning under £60k as you will be entitled to some of it if not all.

A couple of extra points. If he has any benefits in kind (e.g. company car) then this IS included in the calculation of his earnings. Eg if he earns £52k but has a car with a benefit of £8k he won't be entitled to keep any child benefit.
Also, even if he does earn over £60k, if you personally don't pay national insurance as you are a sahm or part timer earning under the threshold then keep claiming and just pay the benefit back on his tax return. By claiming the benefit it will give you a stamp towards your state pension each month.

Not sure if either of those factors apply but are worth knowing

Between £50 and £60k you pay back a proportion (10% for each £1k over £50k). Once you get to £60k it all gets paid back

Officially she is the resident parent as she is in receipt of child benefit. Day to day it makes no difference. The only reason you’d argue this is if your DH wanted to claim the child benefit for your step son as the primary caregiver.

There is actually an option that lets you claim your pension stamp but opt out of payments once income goes above 60k. Saves the whole claim and pay back thing.

It is also important to do this as apparently this makes it easier for kids to get an NI number at 16. Round here you also need the benefit entitlement to prove residency for school places.

Ah this makes sense. Great, so as far as ExW goes she can continue claiming and has no need to know our change in circumstances.

thank you everyone else for the advice regarding whether or not to claim the benefits.