Child Benefit - SAHM

[AmandaPayne]

Right, I have searched the archives and I know there are a million threads. And I've read the MN guide.And the HMRC website. But I'm still bloody confused.

DH earns over the £60k threshold. I am a SAHM for the next couple of years so want to ensure that I don't do anything which messes up my credit for state pension (not that I expect it to be worth much by the time I get there...). I currently receive child benefit for each of my two girls.

Do I need to keep claiming and then go through the palaver of DH doing a tax return, or can I just give up my entitlement on the HMRC website. HMRC seems to say I can give it up, but various threads and newspaper articles suggest I can't.

FWIW, I wouldn't keep claiming just for the cash flow benefit. I don't think it's really worth it to us given the fact that DH is PAYE and this would mean him having to do a tax return.

Thanks! I haven't ever had a letter on this either (despite them claiming that everyone whose circumstances haven't changed recently should have done), so anyone who can tell me what the letter says, that might help too!

you can be claiming child benefit but opt out of the actual payment - that is what I have done

www.mumsnet.com/Talk/_chat/1650493-Child-Benefit-changes-Ive-ignored-this-too-long-HELP

www.mumsnet.com/Talk/_chat/1649359-Child-Benefit-deadline-is-7th-Jan

The above threads have lots of info on them and helpful links

You only opt out of payment not registration for CB , so still accrue the NI credits for Home Responsibilities until youngest is 12. The letter says little more than the newspaper ads. You can opt out online.

DH is PAYE and this would mean him having to do a tax return.

I am an accountant. I have never yet seen a higher rate taxpayer on PAYE fill in a tax return for the first time and not get a refund - sometimes THOUSANDS of pounds (many people do not understand how their pension contributions work). Even if not thousands, 25% of any Gift Aid payments (National Trust etc.? Other charities?), 40% of subscriptions to most professional bodies, additional mileage claim if the company pays less than 45p per mile etc. usually add up to hundreds - it is rare not to cover my fee.

Do I need to keep claiming and then go through the palaver of DH doing a tax return, or can I just give up my entitlement on the HMRC website. HMRC seems to say I can give it up, but various threads and newspaper articles suggest I can't.

Having read my previous post, and noted that if there is any change to your DH's circumstances that means you can claim after all you will have to re-apply for a backdated payment - this may not be a priority for you at that time because the relevant changes are redundancy, separation or death - if you do want to opt to not receive CB you have about 60 hours left. If you haven't had a letter you probably haven't got a link to the form which you can get here.

Thanks all.

Good points Mr Anchovy regarding the benefits of doing a tax return. Will have to think about that. DH actually trained as an accountant many moons ago and is technically qualified (though that isn't his current area of work) so he should be able to do a basic tax return himself. Really worth thinking about the amount we could actually gain from that process (Wonder if that's in the government figures for savings!)

Also good point that if DH drops dead (or leaves, or loses his job), the hassle of having to reapply for child benefit and wait for it could be a pain at a difficult time.

Can I just ask, since you are an accountant and presumably have dealt with a lot of enquiries on this, in general are people you are advising keeping it going and planning to do tax returns? Just interested to know what the experience is out there as, currently being at home, I'm not really in an environment where I can chat with people about it. At work I could have done as we were high earning professionals and most of those I worked with would have been affected, either themselves or via their spouse. When you are a SAHM it's a bit rude to delve into peoples finances!

DH actually trained as an accountant many moons ago and is technically qualified (though that isn't his current area of work) so he should be able to do a basic tax return himself.

Is he familiar with the changes in tax regulations, HMRC policies and case law in those many moons that will ensure you claim all available allowances?

Wonder if that's in the government figures for savings!

I believe it was at first, but I can't find the original Tax Impact Notice now. I bet they underestimated it anyway.

Can I just ask, since you are an accountant and presumably have dealt with a lot of enquiries on this, in general are people you are advising keeping it going and planning to do tax returns?

I'm the wrong person to ask - that's a bit like asking a doctor if he knows anyone that is sick! Everyone I know that pays higher rate tax already does a tax return.

I can tell you that every piece of advice I have seen, including from benefits advisors that don't normally deal with higher earners, is advising not to disclaim. To reiterate:

1. The amount collected by the clawback will never be more than the amount of CB you get;

1. You get to hang on to the cash for up to 22 months (April 2013's CB will not have to be repaid until January 2015);

1. You won't have to worry about making a backdated claim following redundancy, separation or bereavement.

Is he familiar with the changes in tax regulations, HMRC policies and case law in those many moons that will ensure you claim all available allowances?

Probably not, but he has lots of still-practicing work mates who owe him a favour and would run through the form for him.

I'm the wrong person to ask - that's a bit like asking a doctor if he knows anyone that is sick! Everyone I know that pays higher rate tax already does a tax return.

Yes, I suppose. If you already do a form I suppose it's a no brainer to take the cash flow advantage. Unless for some reason you don't want the delayed tax liability and would rather not receive the money in this financial year.

Thanks for your help.