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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be pissed off about paying back child benefit

560 replies

pinotnow · 05/02/2023 16:56

I am in a sector that was awarded a pay rise this year - though our union is fighting for a higher one. The rise was from September but our school (yes, it's teaching) didn't pay it until November when we got months at once. HR always send us a pay statement at this time of year and I have just opened mine and seen I am now on approx £52k (been teaching 18 years and am head of a core subject in a large secondary school). I understand I now have to pay back some of my child benefit. This is a pisser as things are pretty tight and I'm a lone parent who gets no CM (ex is a total waste of space - I've gone through CMS). Also, I wasn't expecting it this year (I was on £49k last year and now I'm worried I've missed some sort of deadline for paying it back as technically I've been on this for 5-6 months, but only just realised.

I really haven't got the head space for this now and a quick Google has just brought confusion. As soon as you move forwards a bit in this shithole country you move backwards it seems. Any advice would be great!

OP posts:
Wibblewibble1 · 05/02/2023 16:58

I can’t claim child benefit, as my partner Earle’s over 50k and we have to pay the tax on it - this makes it not worth while at all as I pay most of it back. It’s ridiculous. We both work but I am not in high paid employment and we struggle on by paying our mortgage and taxes , then can’t claim child benefitS the system is laughable and rubbish. I get why you are upset.

Coldilox · 05/02/2023 16:59

Presumably you are paying into the teachers pension scheme? If so this will bring your income down to under the threshold so you shouldn’t need to pay anything back.

ReamsOfCheese · 05/02/2023 17:01

YABU to call it a shithole country when it's given you free money for years and years. It's not child benefit's fault that you're a lone parent or that your ex doesn't pay CMS. Also if you were on 49k surely you saw it coming that you'd be over the 50k soon-ish?
First Google result for "child benefit over £50,000" explains it: www.gov.uk/child-benefit-tax-charge
The link at the bottom of the page sets out exactly how you sort it out: www.gov.uk/child-benefit-tax-charge/pay-the-charge

Quitelikeacatslife · 05/02/2023 17:02

Ring hmrc and chat with them, you'd only have to pay if you had to do tax return so for this new salary wouldn't be until this time next year.

Thatsnotmybee · 05/02/2023 17:02

I do think it's mad that a couple earning £49k each can claim it, but a lone parent has to pay it back. It should be based on household income.

SweetSakura · 05/02/2023 17:03

Is that your gross pay?
After pension contributions you may find you are still below the threshold

bumbledeedum · 05/02/2023 17:04

Thatsnotmybee · 05/02/2023 17:02

I do think it's mad that a couple earning £49k each can claim it, but a lone parent has to pay it back. It should be based on household income.

This, 100%

KMW79 · 05/02/2023 17:04

Whilst the pay increase wasn’t paid until November it was announced in July so you could’ve calculated then that you’d be over £50k at some point this financial year?

BergamotMouse · 05/02/2023 17:05

Take off your pension! That should bring you below threshold.

MajorCarolDanvers · 05/02/2023 17:05

SweetSakura · 05/02/2023 17:03

Is that your gross pay?
After pension contributions you may find you are still below the threshold

This. You should be able to retain most of CB

Original poster
pinotnow · 05/02/2023 17:05

@ Reamsofcheese It's a total shithole and has had plenty of free labour off me over the years so I'll call it what it is. And it is a totally unfair decision that a single income family on £50k has to start paying it back while a double income family can earn nearly double that and not have to. Total shithole, yes.

I can't work out the pension thing at all and whether it applies to me.

OP posts:
BugsyDrakeTableScape · 05/02/2023 17:05

It's a sliding scale from £50k to £60k on terms of tax. You need to earn the money in the tax year you're claiming in so if you got the rise in November then you won"t earn the £52k in full until the next tax year, and then you need to file a self assessment on the October afterwards. There is an online calculator where you can put your details in and it tells you approx how much tax you'll pay and when you need to do it.

There are ways to bring your calculated earnings down - for example looking at gift aid contributions or pension contributions - but just be careful as if you're already claiming a tax break on them (for example salary sacrifice pension) then you won't be able to claim it for CB purposes.

We've just been through the same process and it is a minefield

StormInaDcup99 · 05/02/2023 17:06

Ilthat sounds v annoying OP and sorry i have no advice. However, I disagree re it being a shithole country.
Yes.... there are many things we get wrong for sure......but I can think of many many many worse places to live

MintJulia · 05/02/2023 17:07

I earn roughly the same OP, but I pay 5% into my works pension, taking me just below the threshold.

You'll probably be the same.

44PumpLane · 05/02/2023 17:07

Okay so you don't pay back all of your child benefit over £50k.....it's a sliding scale for taxable earnings from £50-60k (at £60k plus you'd pay it all back, under £50k you keep it all). You have until the end of this tax year to sort yourself you....how much do you put into your pension monthly? Does that take you to below £50k gross earnings in the 22/23 tax year (if not then you need to really think about paying into a pension)!

Same next year.....any pension contributions should push you below the £50k taxable earnings mark

ArseInTheCoOpWindow · 05/02/2023 17:08

ReamsOfCheese · 05/02/2023 17:01

YABU to call it a shithole country when it's given you free money for years and years. It's not child benefit's fault that you're a lone parent or that your ex doesn't pay CMS. Also if you were on 49k surely you saw it coming that you'd be over the 50k soon-ish?
First Google result for "child benefit over £50,000" explains it: www.gov.uk/child-benefit-tax-charge
The link at the bottom of the page sets out exactly how you sort it out: www.gov.uk/child-benefit-tax-charge/pay-the-charge

It is a shithole country. Child benefit was not introduced to be means tested.

If it had to be means tested why focus on one parent? It affects mainly single parents in the current set up. It’s disgusting.And when it was introduced 12 years ago 50k was quite a lot.

This shit shit shit government.

Fivefootoffun · 05/02/2023 17:09

Following as in a similar situation. No
idea how the pension allowance
works either. hopefully it’ll mean your still entitled.

completely agree it’s ludicrous that it isn’t based on total household income.

PugInTheHouse · 05/02/2023 17:09

As other posters have said, it's a sliding scale so still worth getting until you earn over £60k. You can do a tax return to pay it back so won't be till next year now.

There are calculators on the HMRC website so you can put in your salary details to work it out. If you have a payslip to hand you will be able to put in your pension contributions etc.

QueenofLouisiana · 05/02/2023 17:09

Advice: get onto it asap. If you need to stop claiming or paying it back make sure you go it straight away.
We are both teachers (DH is a DHT) and thought our pensions, tax etc took us under the threshold. It didn’t. Not everything is taken into account.
We are now paying it back, with a gone. Probably been fined more than Zahawi was.

Original poster
pinotnow · 05/02/2023 17:10

Well other perfect people may have worked this out in July when the pay rise was announced but I am not them!

So, the amount I quoted is before any deductions, which is gross income isnt it? So is it as simple as adding all my pension contributions up and if they bring my take home pay below £50k (they will) then I don't have to do anything? I'm not part of any other scheme aside from the normal teacher pension scheme bit don't offset childcare costs or anything.

OP posts:
QueenofLouisiana · 05/02/2023 17:10

With a fine, bloody autocorrect

PuttingDownRoots · 05/02/2023 17:11

Its a stupid system, especially for single parents. Household income is fairer all round.

Wowsersreally · 05/02/2023 17:13

you’ll be paying 10% into your pension - so abut £5000. That’ll bring your income below the threshold to lose your child benefit for this year.

you can make additional pension contributions to stay below the tax threshold. Might be worth looking into.

Look at your payslips, and the teachers pensions website a bit if reading around and you’ll get to grips with it.

JadeSeahorse · 05/02/2023 17:13

Thatsnotmybee · 05/02/2023 17:02

I do think it's mad that a couple earning £49k each can claim it, but a lone parent has to pay it back. It should be based on household income.

This with bells on!

This stupid rule is totally unfair and, IMO, discriminatory against single parents. 🤬

Wowsersreally · 05/02/2023 17:14

pinotnow · 05/02/2023 17:10

Well other perfect people may have worked this out in July when the pay rise was announced but I am not them!

So, the amount I quoted is before any deductions, which is gross income isnt it? So is it as simple as adding all my pension contributions up and if they bring my take home pay below £50k (they will) then I don't have to do anything? I'm not part of any other scheme aside from the normal teacher pension scheme bit don't offset childcare costs or anything.

Yes, that’s right!

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