Child benefit higher rate tax payer

[Nc4post99]

So my hubby just got a new role, v proud of him it’s long awaited. It pays £55k, £10k increase.

We’ve just had our second child so claim child benefit for 2.

I’m on mat leave, but when I’m in work I’m mid £30k, desperately need a new job when I get back but that’s irrelevant here lol.

What does this mean for CB, I know he’s a higher rate tax payer or at least he will be when he starts in June. I googled and it says something about a self assessment tax return and you pay some of it back? But this is virgin territory for me. Could someone explain for me please? :)

Side note it does seem a little silly/ unfair that it’s on sole income not joint. Family could be a single income house hold and then they are obviously worse off than 2 parents earning £35k each.

Echoing what everyone says

a. The system is stupidly unfair as you could have 2 parents earning 49,999k each and not have to pay back a penny, and yet one parent on more than 50k does

b. Do your sums and see if increasing pension contributions slightly will take you below the threshold. Its a double win usually due to the tax benefits.

No you don’t, but you need to call HMRC to remove your self assessment flag from your account. I’ve just had to do this as It kept reminding me to do one even though I didn’t receive CB anymore.

Thanks Yellow, what happens if that SA flag is on there and you don't do one?

@SonicBoomBoom

No you don’t, but you need to call HMRC to remove your self assessment flag from your account. I’ve just had to do this as It kept reminding me to do one even though I didn’t receive CB anymore.

Thanks Yellow, what happens if that SA flag is on there and you don't do one?

I’m not actually sure, but the emails and text alerts got really frequent as the deadline approached!

Just to add, you can still register for child benefit but opt not receive payment.

I think I did this years ago after DD1 was born but I can’t remember does anyone know how I would check?

@McClary111

53333 I worked it out at assuming 1st June start date. So does he pay more than 278 into a pension each month?

He pays it as a % of his income and it’s a match contribution from his employer, think around £250.

When he starts at this job he’ll be able to adjust his pension again I imagine. It will be a similar scheme, employer will contribute a flat amount and then do a Match contribution up to x%. My job for instance 10% flat rate and then match up to 7%. There are quite a lot of perks at his soon to be new employer so I imagine it will be similar to mine.

@minipie

Just to add, you can still register for child benefit but opt not receive payment.

I think I did this years ago after DD1 was born but I can’t remember does anyone know how I would check?

Ignore me - managed to check via govt gateway

You have 3 options:

1. Claim child benefit, opt into receiving the payments and DH, as the higher earner, registers for self-assessment and pays the tax charge. Doing this gives you the child benefit payments, generates an NI number (when DC is the right age) and gives whichever parent claims the benefit an NI credit until your child turns 12. I would recommend you claim it, not DH so that you get the NI credit during your mat leave as this counts towards your state pension entitlement.

1. Claim child benefit and opt out of the payments. You still get the NI credit and your child is on the pathway for an NI number but no-one has to pay a tax charge, or register for self-assessment.

1. Don't claim it at all. I wouldn't advise this as you'll lose out on the NI credit and your child will need to apply for an NI number at 16.

There's a calculator somewhere on the government website that'll tell you how much you would need to pay back.

We'd need to pay back all but 80p if we claim for our 2, so that's nice.
It's a bit shit it's focussed on the higher earners income, even if the lower earner is on SMP, SSP or whatever.

@girlmom21 I already posted the link for that up thread