Child Benefit - another question on opting out or filling in a tax return!

[testbunny]

Hi there,

The Child Benefit is in my name - I earn under £50k gross. However, DP earns over £60k. If we don't opt out who will the IR send the tax return to? We are not married (i.e. different names), but live at the same address.

Thanks
TB

BTW. neither of us currently fill out a SA form. thanks

They won't send a tax return to either of you, your DP needs to tell them that he needs to fill in a return. You can only do this online if you are self employed, so use this form and post it.

Thanks MrAnchovy. I guess rather than having to start filling in a SA we will opt out. I guess, it would have been easier if we were doing SA already.... So, if we don't opt out, it will be him that they claim the CB back through, rather than me, even though the CB is in my name? If we neither opt out or request a SA form what happens then??

Also, neither of us were sent a 'letter' - I thought all PAYE were??

If you neither opt out nor request a SA form you won't be paying the right amount in tax. Fraud basically. You can still opt out of CB after the deadline but there is a small charge for doing so.

If it's any reassurance, SA and submitting online is actually really painless and easy to do. I found I'd been paying too much tax by not claiming the rebates due on private pension contributions and charitable donations. Now I do SA I get money refunded most years. Recommend spending £25 on a bit of software called 'TaxCalc' ... does up to six returns... that leads you through by the hand.

300,000 families still not contacted about changes to CB

I have opted out of getting CB. Dh earns over 60K and got the letter but it was me that had to opt out as the CB was in my name.

If you receive child benefit and want to opt out you can do so at www.hmrc.gov.uk/stopchbpayments or call 0845 302 1444. It is possible to opt out at any point after the deadline, but you will pay a tax charge on any payments you have received.

You won't necessarily be able to avoid SA long term . I suspect HMRC will suddenly ask a whole load of people who don't currently submit to complete one , just to check. The onus is on you and dp to make sure that you are paying the right amount of tax , regardless of whether HMRC contact you, otherwise you could be liable to fine and backdated payments.

www.hmrc.gov.uk/childbenefitcharge/declaringchildbenefit.htm - tells you how to register for self assessment

Also, neither of us were sent a 'letter' - I thought all PAYE were??

No, it was supposed to be only those HMRC thought likely to be caught i.e. those with income around £50k or more in 2011/12 (which is the latest PAYE records they have) with the same address as someone claiming CB.

But Friday's news was that 30% of the people expecting letters haven't been sent one. This is not going smoothly.

So, if we don't opt out, it will be him that they claim the CB back through, rather than me, even though the CB is in my name?

Yes, it is always the higher earner that pays the charge.

If we neither opt out or request a SA form what happens then??

If one of you has Adjusted Net Income above £50,000 in 2012/13 or any subsequent year and does not notify by [?31 October], that person will be breaking the law.

Thank you all - really useful.

I will talk to DP and let him decide whether to opt out or do it via a SA as he will be filling in the SA!

I still cannot believe that more fuss isn't being made about the flaw about how 2 parents can, together, be earning close to 100k and not lose it, I really can't! Mind you, it may kick off yet....

I am confused! Been to HMRC website - put in my numbers (my adjusted net income is prob about £60) - it is the only income to the household but thats just sadly irrelevant. It states that the amount of CB counted for tax to pay is £438 and that I am liable to pay 100% of CB as tax. Can anyone explain if I will have to pay £438 in tax or £1750 which is what I currently receive in CB???

I think the lower amount will be what is left of this tax year.

katewithtwins, I would imagine that £438 figure they have quoted is just for the 2012-2013 tax year, i.e. January 7 to April 5.

Doh - of course!

Ok I'm out of date on this but if you earn over 60k aren't you in the top tax bracket? So you have to fill in a tax return anyway?

Southwest, many would but not all. I think if you submit a few years' where the result matches what was paid through PAYE etc then HMRC can tell you not to. dh had this a few years ago then they recalculated something and decided they wanted him to self assess again.

you need to do self assessment if you earn over 100K. DH earns more than 60K but less than 100K so doesnt need to do one.

plenty earning less than 100k do SA!

I know that but dh is not required to do one as he doesnt fall into a category that requires it - he is not self employed, he earns under 100K, not a company director, etc, etc. I was just saying that not everyone on over 60K would be doing self assessment as standard

I suspect that time may yet come though.

Thanks guys I am really out of date then I thought it was being in the top tax bracket that was the trigger