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Child benefit changes for higher earners

9 replies

Jiddle · 15/01/2013 15:20

Just wondering if there are any benefits to retaining child benefit payments and paying the full tax charge if, for example, you're divorced and have a difficult ex? E.g. If you anticipated any dispute over the DCs' residence would it be of benefit for the resident parent to retain the child benefit even though he/she would have to pay it back through self-assessment?

OP posts:
MrAnchovy · 15/01/2013 16:03

Neither eligibility for nor the receipt of child benefit provides any kind of evidence as to residence.

It is always of benefit to retain child benefit payments and pay back the full amount in clawback because you get the benefit of the cash for up to 22 months.

CogitoErgoSometimes · 15/01/2013 16:20

The CB goes to the parent determined the primary carer rather the other way around. However, if you've always been the claimant, it may be worthwhile continuing to claim and accepting the clawback rather than creating a vacuum which a difficult ex might exploit.

weegiemum · 15/01/2013 16:24

We're continuing to claim and dh can have it taken off his tax. Because I don't trust them to keep up my pension credits if I don't. I know I should but I just don't!

MrAnchovy · 15/01/2013 16:35

"The CB goes to the parent determined the primary carer."

Not necessarily. It can be paid to either parent (or eligible foster parent, guardian etc.) if they contribute to the child's upkeep. The contribution does not have to be in cash, but it must be at least of equal value to the amount of child benefit.

lljkk · 15/01/2013 16:39

For me it makes me less stressed to have finances simpler so easier to just not claim if I'm not going to get to keep it.
If you're self-employed this year's income might drop, I suppose that applies even for those people who are externally employed in case they might get redundancy.

Except see my note about keeping it simple.

Chubfuddler · 15/01/2013 16:40

If you're divorced surely the other parents income is irrelevant? You're a single parent, it only matters whether you warn over the threshold.

Jiddle · 15/01/2013 16:44

Am not self employed. Am over the threshold. So is exH.

I suppose I'm just wondering if, if exH works out I might have stopped claiming it, and if he then started to claim it ( even though the DCs live with me), he could use receipt of the CB as a basis to say he is the primary carer and make a change of residence application?

OP posts:
CogitoErgoSometimes · 15/01/2013 18:39

He wouldn't be able to say that, no. Do you have a solicitor handling the case?

allnewtaketwo · 15/01/2013 18:42

CSA are only interested in who receives child benefit. They are not interested in any logic at all

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