How to cancel child benefit?

[Cookielover64]

Hi, can anyone tell me the process to cancel child benefit please?

I earn 50k exactly, DP will earn between 50-60k dependent on his end of March bonus. DD is 15 so I don't think it's worth going down the tax return route (correct me if I'm wrong).

Is there a way to end child benefit claim, preferably without having to take a day off work to sit on hold to HMRC?

Thanks

I did it online when I cancelled mine years ago.

However, the limit has now gone up to £60,000 so you should be fine - and remember the £60,000 excludes pension contributions.

Thanks! My concern is he might end up on 61 or 62k once his P60 comes through with his bonus and car allowance etc, that might be end of April and suddenly I'll owe money back and probably be fined knowing my luck.

you would be crazy to cancel just now.

the thresholds have increased to £80,000 now

read this

The government will increase the High Income Child Benefit Charge (HICBC) threshold at which Child Benefit begins to be withdrawn from £50,000 to £60,000 from 6 April 2024. In addition, Child Benefit will not be fully withdrawn until individuals earn £80,000 or more, instead of £60,000 now. The charge is currently calculated as 1% of the Child Benefit payment made for each £100 of income above £50,000. From 6 April 2024, the charge will be calculated as 1% for each £200 of income above £60,000, thereby reducing the total effective tax rate for those affected by the charge.

once you go above £60k that earner completes a self assessment each year and if you owe anything you pay it back.

theres no fine

But it tapers until 80k so for each £1k over 60k you'll only owe 5% back.

https://www.gov.uk/child-benefit-tax-charge/stop-child-benefit there is an online form but seems unlikely you need to

Does he pay into all pension though? Take that off the gross salary - you might have more room for bonus etc than you think!

Thanks. I don't want to cause extra hassle with a tax return if I can avoid it. DP is not DD's dad and the child benefit is paid to me, not our joint account, so I'll be repaying it to him to repay to HMRC. If I leave it another year we could be way over the threshold and in a mess??

Put the figures in the calculator on the gov website and it will give you an idea of how much you would need to pay back, you will get much more than you have to pay back so I wouldn't be cancelling it. @Cookielover64

You pay back a year in arrears. So any overpayment for this financial year won’t be due until next January, or could be reclaimed via your(dp) tax code if a small amount and you submit a SA by end December. He may find he owes very little, if anything.

my self assessment tax return takes about 30 minutes to do.

earning £61-62k means you will keep nearly all of the child benefit.

if he pays into a pension then you will likely keep it all.

Don’t lose out for a small bit of admin

if you are concerned then put all the child benefit into a savings account and use that to repay the tax.

Thanks everyone.

But at just over £60k you'd get to keep most of the CB. It doesn't all get paid back until you reach £80k

There is an online form to opt out of CB payment while retaining your claim if that's what you want to do.