Help for over 50k child benefit tax plz

[Ilovexmastime35]

Hi there can anyone advise please. I feel like the hmrc try to make everything as difficult as possible.
My husband this year has just gone over 50k earnings. I'm a sahm. No benefits. On the Internet I stumbled across something talking about having to send a self assessment tax form to pay back tax for child benefit. Noone has told us anything about this. Why do we have to do this? I know it's to pay tax on the child benefit but why can't they just adjust his tax code, why does he have to self assess?
Ive had a look but no idea even how to fill the orm in! I believe it's an SA1 form? Thanks

I don't think it's a tax, you aren't entitled to cb on those earnings.
It's to pay them back.
some people still take them to pay their NI stamp etc, but have to pay it back.

I can’t help with the form but Does he salary sacrifice into a pension at all? If so and his earnings are below 50k you can still claim the child benefit. It’s Worth planning for the next financial year.

Hi - Its adjusted income over 50K so that would be gross salary - any payments he makes into a pension. It is only part paid back from 50K which is apportioned the more you earn up to full repayment required at 60K. Better to keep claiming it to receive NIC credits etc.

SA1 is to register to complete a Tax return with HMRC then an actual tax return would need to be completed to pay the child benefit due to HMRC back by January 2021.

You have no idea how to fill the form in?

Does your DH not know his:
Title
Names
Address
Date of birth
National Insurance number
Contact telephone number

Tick box to say earning over £50k and in receipt of child benefit.

Sign
Date

What's hard about that?

Get your husband to up his pension contributions to take him back under £50k and then you won't have to pay any back.

But you don't have to pay it all back. It's proportional to the amount earnt over £50k and you only pay it all back when earning £60k+. It would be in your best interests for you still to claim it as a SAHM to get the NI credits. But it's not you who needs to fill in a self assessment. So let your husband sort it out, he's capable of earning over £50k so I'm sure he is capable of little self assessment completion.

I found it easier just to opt out of receiving child benefit. (As my understanding is you're not eligible for it once one of you goes over £50k; and you either just don't receive it, or have to declare it and pay it all back).

I had to do one this year, I was a bit worried about it as I hate anything like this, but actually it's really easy. All done online and took me about 10 minutes. You just need details from your P60, plus any other income you have and pensions you pay into.

He needs to register for self assessment ASAP as I believe the deadline for the tax year 19/20 is 5 October.

Ah, please ignore mine, I didn't realise it was tapered to £60k.

Don't give up the child benefit as if his income fluctuates between £50 and £60k you are still entitled to some of it

However if you carry in as is, you will end up getting taxed on all is income over £50k at the rate of 71% when account is taken of tax, national insurance and high income child benefit tax

It is a no brainer to make contributions to his pension of all income above £50k. Note that gift aid contributions also count as well

Otherwise you have to do self incentive

I had this last year - depending on how far over £50k his salary is, it is worth doing this, as you don't necessarily have to pay it all back, just a portion of it. HMRC sent me a letter telling me that I needed to go online and register etc.
Basically, you go online and fill in a form that registers you to do your self assessment. A week or so later, they'll send you a letter to let give you a code so you can then go in and do your self assessment. i found it quite easy to do, as my only income is from my salary, so you just go through the online form. There's an option to say you're filling it in because you're claiming child benefit and are paid over £50k. At the end, it gives you the option to either pay what you owe, or to have it taken from your salary. Really fairly easy.

On the online calculator, I can still continue to recieve it and he will pay £371 back at the end of the tax year. Does anyone know if this is in a lump sum, or can it spread over 12 months?

Don't opt out of child benefit! It will affect your state pension. You need to do the tax return to re pay it.

@arethereanyleftatall

I found it easier just to opt out of receiving child benefit. (As my understanding is you're not eligible for it once one of you goes over £50k; and you either just don't receive it, or have to declare it and pay it all back).

You will miss out on NI for your final salary pension.

1. you don’t have to do this, he does.
2. he needs to check the take home figure on his P60 and (if no other source of income) if that is below £50k then no action needed.
3. if over £50k then he needs to register for self assessment and complete return for last year. It doesn’t take long.
4. ignore those that say don’t claim. The CB is the only £ going to you in your name. Also, By claiming Child Benefit you can get National Insurance credits which count towards your State Pension and your child will automatically get a National Insurance number when they’re 16 years old.
5. lastly it tapers off and you only have to pay the whole thing back if he takes home over £60k

We had to pay some back but it was deducted via DH’s tax code.

Don't stop claiming, put in your claim but contact them to decline the payment that way you will still receive pension credits. If you don’t claim at all then you don’t receive pension credits which may negatively impact you when you retire

The first year I did mine they added it to my tax code to take out over the remaining months

The self assessment form is really easy. Your husband should be able to do it himself. Took me a few mins!

I earn 53k but because of high pension contributions through work I only pay a small amount back.

Thank you why isn't it done automatically. I thought self assessment was for people who are self employed

@Ilovexmastime35

On the online calculator, I can still continue to recieve it and he will pay £371 back at the end of the tax year. Does anyone know if this is in a lump sum, or can it spread over 12 months?

Depending on when you do your tax return and the value of the repayment you can choose to pay lump sum or have it adjusted in next tax code

As an aside this isn't a new thing and has been around for years

Also there are lots of deductions which can be made - I earn closer to £55k and still get child benefit through combination of pension contributions, I buy additional holiday from work and before that also childcare vouchers. Claim the difference in fuel between what company pays and the government allowance and also WFH allowance now

It depends as to when the tax return is done as to whether it is paid back via his tax code. Its worthwhile to keep getting the money if he earns between £50- £60k as only a proportion is paid back. Once you go over £60k it all needs paying back

If he did earn over 60k and you claim but opt out of payment then NI credits are still given.

He needs to register for self assessment anyway

@Ilovexmastime35

Thank you why isn't it done automatically. I thought self assessment was for people who are self employed

Because everyone has different deductions - it's not a blanket £50k cut off for everyone

@doctorhamster

Don't opt out of child benefit! It will affect your state pension. You need to do the tax return to re pay it.

Not true! You can opt out of receiving payments but keep the ni credits. There is a sliding scale of repayments for earnings ( net of some deductions like pension contributions) between 50 and 60k.

It is a real pain, OP, but more of a mental overhead than hard in reality. It's quite straight forward to do it once you're set up. Self Assessment is needed for employed people for lots of reasons - company car drivers, those earning over £100k, those who have additional income from other sources, and now, individuals whose gross pay is >£50k per annum and who claim Child Benefit as a family.

As other posters have said, your DHs pension payments may reduce his pre-tax income to under the £50k.

He will know this by checking his P60. If that's the case - happy days, no self assessment needed.

Who’s name is child benefit in? If it’s yours, you don’t earn 50k so it’s a non issue...