Will we lose all of child benefit payment?

[Snugglemonster84]

Aibu to be completely confused? My husband is about to get a paryrise and will earn 52k plus a 5% bonus.
I thought when you hit 50k you lost your child benefit, it just stopped. I've been reading and discovered it doesn't stop, my husband will have to pay it back in tax.

Does anyone mind who earns similar telling me how much you pay back at this salary?
Which would be the better option for us?

1. Stop recieving child benefit to keep things simple or
2. Still recieve it, inform them so tax code changes and husband pays it back (or some of it)

Ive also read that you have to complete a tax return? We haven't a clue how to do this as he's just salaried and why do you need to do that when you've informed them and the tax code should be altered accordingly?

You will pay a higher rate of tax on it.

Still worth keeping it as you’ll get something from it.

Yeah it’s a mess.

But you won’t lose it all, or even any of it depending on pension contributions. You’ll still keep the vast bulk of it. Definitely keep claiming it.

It’s a very simple tax return that you can do on line and they will claim back any overpayment through his tax code.

You will probably get around 80% of child benefit as I think it tapers off up to £60k.

We decided to keep it and repay the tax. I think you should be able to alter the tax code but if you have to complete a tax return it really isn't complicated.

And yes you should complete a Self Assessment Tax Return. Should be easy if he’s paye as this will pre populate on the return and then you just declare the CB and it will give you a figure that needs to be paid.

There is a calculator to work out how much you would need to pay back:

www.gov.uk/child-benefit-tax-calculator

We are in the same situation. However, I am going to keep it going as I believe it helps to pay for your NIC if you don't earn enough yourself, until the youngest child reaches 12. A tax form is submitted and they tell you how much they need to reclaim and will deduct from partners pay (tax code), I believe.

It’s still worth keeping it as they won’t tax the whole thing away, just a percentage of it, so you’re still getting money to keep.

Does anyone know if, the same way your pension is taken in to account, are your childcare vouchers too?

Do you work atm, or are you a sahp? If the latter then it’s best not to choose to stop receiving CB (even if you were no longer entitled to any of it) and ‘pay’ it back via tax as it means your personal NI contributions are intact for the period of not working.

We are in the same boat. So yes you are supposed to send a tax return back every year to state earnings then you are required to pay back 1% of CB for every £100 over the threshold (think that's 47,000). Anyway we didn't realise of course in our baby bubble as friends told me everyone was entitled (which in a way they are) but we just got billed we have to pay back everything because my husbands over time took him well over the threshold. So work out what you will be entitled to and send the tax return in paying some back if applicable, stop claiming if its not worth your while, or claim and put into a high interest savings account and earn money on the CB keeping in mind you will owe a certain amount back. Hope this helps xx

By January 31st 2021 your husband will need to complete a tax return
for April 2019-April 2020 and he will pay a proportion back to HMRC.
I have been storing my CB in a separate acc as I earn under 50k but get a bonus in January that takes me over my limit. I kept it incase my bonus didnt come through.

Definitely worth continuing to claim it. If one of you earns between £50k and £60k you still keep a percentage of it. Over £60k and you have to repay the whole lot.

It's easy enough to do a self assesment tax return online. Just be sure to do it as HMRC could fine you for not declaring.

The link to the calculator that tells you how much will have to be repaid is on this page:

www.gov.uk/child-benefit-tax-charge

He has to do a tax return because he's on the list of people HMRC requires a tax return from.

Direct link: www.gov.uk/child-benefit-tax-calculator

We think from the calculator that DHs bonus will take us over the threshold for the first time, and we'll have to pay half of it back. So we've been putting half of it aside into a separate account so we weren't shocked when the tax return was due! It's a whole new ball game for us, we've been very low earners for years and years.

Thank you so much for that. I understand more clearly now.
So you don't have to inform anyone of anything, you just fill in the yearly self assessment form?
And also any payments you make into your work place pension you deduct?

And also, once you submit the form, do you have to pay back the whole chunk immediately or is it spread out over the year and taken each month from his wages? The calculator says we will owe 250 pounds

Yes you include your pension details, if he made higher pension contributions you would be entitled to more of the CB

If his salary is £52k you need to deduct his pension contributions and any childcare vouchers from that. If the amount is now below £50k you don’t need to do a self assessment.

My DH earns £54k but we still get full child benefit and don’t do a return as his pension and vouchers drop his salary below.

You can also claim but decline the payment so you still get the NIC contribution to your pension. Means that you don’t have to worry about tax returns or paying anything back.

We are having to pay back our child benefit this year too. We are having a terrible time trying to do it. My DH went online to fill out a self assessment, it said we would get a number through the post and we have never received it. My DH called the inland revenue and they have said it will come through the post within the next 2-3 weeks and I’m worried incase we are going to be penalised for it being late!

Not sure if anyone has already mentioned but are you a SAHM? Really important for you to know that if you are then the receipt of Child Benefit gives you credits towards your NI and ultimately your entitlement to pension so you are always better off claiming it. I believe that you can opt out of receiving the payment once you get to the maximum but still receive the NI credits. Make sure you do that if you don't work.

Pensions are a bit of a red herring. This is only relevant if the deductions are made from net pay, which is unusual

Also you have to register for self assessment by 5 October if you’re not already completing a tax return

If you owe less than £3k and file by 30 December you can ask for the tax code to be amended to collect the tax owed

You need to register - if you go onto HMRC and look for the self-assessment portal if should have the link. Your husband just sets up an account.

It is broken down into sections for the tax return, so he will need his p60, details of any interest he has earned on savings and child benefit if he has no other income. You just click through and add in the amounts when you get to the box.

Tax returns come online from 6th April for the year before, so from 6th April he can complete the tax return for 6th April 2019-5th April 2020. You have up to 31st January and can complete whenever you want in the year, as long as you file the form and and pay the tax by 31st January.