To not understand this Child Benefit stuff

[Summeblaze]

When the new Child Benefit changes came out, I received a letter detailing what i needed to do to check if we were still eligible. I used the calculator on the site and with DH's salary with his pension payments deducted, we were just under the threshold so nothing needed to be done.

DH has now had a payrise but I am unsure what to do. It wasn't a huge one so won't be close to the £60,000 so will still be receiving the payments and assume that they will see the increase and we will be taxed accordingly. Is this right.

AIBU to assume it would be easier than this.

"We were just under the threshold"

"DH has now had a payrise"

"I am unsure what to do"

You obviously need to call HMRC and let them know of the change to your income.

What else would you do?

My DH calculated with OT he would be above the £50k threshold after his December salary was paid, so I phoned up and stopped payment of CB to us.

By April with OT and Shift allowance he will have reached the £60k threshold and we decided we would rather not receive the benefit rather than be in the situation where we have to pay it back.

Come April, I will phone up and ask them to start paying it again as it will be the start of a new period and threshold will not be near again until December this year. And we will repeat the process.

For every £1k over the threshold of £50k you earn you pay 10% of the benefit in tax.

So you earn £51k you pay 10% tax, £52k you pay 20% and so on up £60k which would be 100%.

Hope that helps.

They will see the increase but be careful in case you have to pay some back.

Your DH needs to complete a tax return to pay back some of the CB. He needs to phone HMRC to register for self assessment and to get a logon to the online gateway as that is the easiest way to do a tax return.

We will still keep the payments as we won't be at all near the £60,000 so what they tax will still be less than what they pay us. As it is the tax guys who will be taking it off us and they know what the annual salary is, I guess I thought they may already be aware and taxing us already.

You can also make additional voluntary contributions to bring yourself back under the 50k threshold. You still need to complete a tax return but shouldn't need to pay any back.

So DH got his pay rise in November. Am I still in time to do what I need to do. I don't have any idea about tax and self assessment forms etc.

Come April, I will phone up and ask them to start paying it again as it will be the start of a new period and threshold will not be near again until December this year. And we will repeat the process

Um...are you sure?

Surely it's just on annual income...so if, at the end of March, the amount he earnt annually is over the upper limit, the annual amount of CB awarded for the year is £0....not, you get £x per month until the threshold is earnt...