Child Benefit

[freetheunicorn1]

I am currently separating from my hubs and and trying to work out my budget.

I don't currently claim child benefit but will be entitled to it by myself. I earn under the threshold but if I get my expected annual bonus it would put me slightly over. Is this just resolved in tax? Don't want to not claim as my bonus is not guaranteed but don't want to screw myself either.

The usual advice is to up your pension contributions slightly so that if your bonus comes in it still puts you slightly under the threshold for the year.

Claim, it's after tax so you can earn more than 50k and be eligible. You can simply be taxed if you are over the limit

That’s not right.

It’s based on taxable income, so after pension contributions so if you are below £50k after contributions then you’re fine.

If you earn over £50k, you do a tax return to pay the excess back.

If you go over you just fill in the Self Assessment form.
Its not completely after tax, but some things are deductible like pension contributions. So often earning just over is ok.

Thanks for the advice re pension but at the moment I am trying to maximise income not pay less tax.

It doesn’t just stop at 50k, it reduces at a rate of 1% of your CB per £100 of taxable income over £50k. So if your taxable income is £55k you’d have to pay back 50%. You’d need to register for self assessment and pay it back that way. If your bonus only takes you over by a small amount it’s probably worth contributing that equivalent to your pension so that you don’t cross the threshold at all and then you wouldn’t have to self assess either

I didn't appreciate that it was just taxable income so all ok, my bonus is that good 😂.

My husband and I have agreed a separation date but still living together for now whilst we argue out the details and then I will move. Can I claim now or would I have to wait until physical separation?

It's not after tax.

We are in a similar situation. As long as you don't earn a guaranteed 60k+ with your bonus, I would claim. You will just need to fill in a self assessment (if you do it before the deadline you can choose to pay back through PAYE - your tax code will change).