Temporary promotion and Child benefit

[MiniBeesMum]

Hi, I'm really unsure about what to do and would value people's thoughts.

I currently earn £40,500 and receive child benefit. I have been given a short term promotion which will last 3 months and the salary is £55,500.

My annual income will not exceed the £50K threshold but I'm unsure what to do about the child benefit. It seems harsh to lose 55% when overall I won't reach the threshold and I'm concerned that it'll be tricky getting it back. DHs contract finished in May so we really need every penny in order to have a cushion if he struggles to find another job.

I'd really appreciate people's thoughts and advice.

YABU - Contact them and take the hit
YANBU - The promotion is so short that you are losing out for no reason

As you say you won't go over the £50k in a year do won't be an issue.

If you won't reach the annual threshold of 50k then there is nothing to tell them.

If you wont go over £50k over the financial year then you don't need to do anything and you wouldn't need to notify them in advance anyway.

If you did go over £50k then you'd complete a self assessment tax return and would pay back a % of what you had been paid. Its 10% per £1k over £50k and at £60k you'd pay it all back

Amazing! Thanks for the reassurance! I don't want this opportunity to be soured by any issues. We are saving like mad so I guess if it's a problem then the money will be sitting there to give back.

Remember its 50k after a few deductions like pension contributions. So even more likely to be under.

£15k promotion

presumably they think you’re up to the much more senior role that you’ll be occupying for 3 months?

and then you’ll go back to you paying job paying 25% less?

If you earn over £50k annually after pension contributions by the end of the tax year then you need to contact hmrc, otherwise no need to do anything at all.

It's not like other benefits where you have to tell them of every change in circumstance; it's a universal benefit, but must be declared on the tax return by those earning over the threshold.

If you're in the least worried that you'll go over, just do a self assessment tax return - it doesn't take long. Many people claim the child benefit and then any they're not entitled to is clawed back when they do the tax return, although it sounds as though there won't be any need in your case.

If DH is not currently earning, then it would be best if he claimed the child benefit, if you have any children under 12. Child benefit claimants get National Insurance credits until the youngest is 12 (which is why some people claim child benefit even if their other half is way over the threshold and has to pay it all back).

Yeah, pension contributions take a fair chunk! Probably wouldn't quite take this below the threshold but does for DH.

Thanks! I'm extremely grateful for this opportunity! If all goes well then I'll apply for the next permanent role.

I'll go back to the lower paid role but I'm not concerned about that. It's also a brilliant role and addresses a skills gap which I wanted to sort out.

DH is earning until June (we think). If I'm able to make this promotion permanent then I think that we will change it to him claiming though it doesn't change how much we receive.

Hopefully he'll have a new job fairly quickly. He'll go nuts if he doesn't have something to occupy him!

If you don’t go over 50k nothing to worry about. If you went over then it’s a portion only and not everything. If it’s over 60k then it’s everything.
I’d not worry until the p60 arrives next year.

You can make additional pension contributions to bring your income under the 50k threshold if necessary.