Child benefits - Would this work?

[FrequentFlyerRandomDent]

Hello,

The thought keeps coming back in my head and I must get this straight once and for all.

Assumption:
The Forthcoming change means that single income family of X income per year will lose child benefit, but dual income families with same income per year will retain child benefits. Thus affecting families with SAHP.

Question:
Why don't SAHPs register as sole traders, Say cake bakers... Then Sell each other one cake per financial year. Declare it as income. And, voila, suddenly they are a dual income household and keep the child benefits!?

Would this work?

I know the spirit of the changes is to save money for the government, but I still want to know.

Thank you.

No - not if your partner earned over the limit.

Er no, hasn't changed higher earning partner's income, just their expenditure.
System does seem quite unfair though. We'll be much better off with both of us working part time than if one worked full adn the other not at all. That's not why we're doing it, we're doing it because we both like working and we both like time at home with the kids. But financially it's great from the tax and CB point of view too.

It's not about being dual income. You would lose CB if one or both of you earns into the higher rate of tax.

If both (or one in a single income household) earns below then you keep it.

Thank you. I thought there must be some substantial bit I had overlooked in my assumptions.

The best way to offset the £20/week loss is for the SAHP to get a job paying £20/week...

No, the way to do it would be either for the higher earner to put more into their pension and so reduce their take home pay.

Or for the high earner to set themselves up as a company and pay their wife to do their admin. Not worth the money it saves though.