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Claiming child benefit while self-employed and earning above threshold

2 replies

RiderofRohan · 23/01/2024 10:58

So my DH is self-employed via a limited company. He earns above £60k however only pays himself a salary of about 30k. The rest stays in the business or goes to pension contributions (it's a one man business btw).

I'll be on mat leave and only be receiving the maximum maternity allowance in a few months with no other income for a year.

DH's accountant says that we are entitled to child benefit once our baby comes based on the information.

I'm not sure about this advice. Can anyone in a similar situation shed some light on it?

OP posts:
StatisticallyChallenged · 23/01/2024 11:04

If he has a limited company then he's not self employed technically. It's an important distinction

Abc ltd makes 60k and pays corporation tax accordingly

Bob Jones earns a salary of 30k from ABC. That's his income that he is taxed on and what cb entitlement is based on.

You don't mentioned dividends so I've ignored them

RiderofRohan · 23/01/2024 11:48

Thanks for your answer.

So he works through a limited company rather than a sole trader.

I've checked and the 30k includes salary and dividends.

OP posts:
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