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Child benefit and non-uk taxpayer

12 replies

fidol · 26/01/2013 10:50

Sorry if this has been done to death... Due first child and husband works abroad, gets paid and pays tax in that country. His accountant sends in evidence of this to hmrc so he doesn't pay any uk tax. If I claim child benefit would it affect him? (He would earn over the threshold if paid in pounds) Also I will be a sahm so from reading other threads it makes sense to claim cb for ni reasons?

OP posts:
Rockchick1984 · 26/01/2013 12:32

Will you and your child be living abroad with him?

MrAnchovy · 26/01/2013 12:33

Speak to the accountant, it depends on what "doesn't pay any UK tax" means exactly (it may be that he is liable for tax in the UK but tax he pays overseas is offset against it).

CogitoErgoSometimes · 26/01/2013 12:34

I can't see how the High Income Child Benefit Tax Charge would affect someone not domiciled in the UK and not paying UK tax. For that matter you could also claim Child Tax Credits because your declared household income must be zero. Morally whether it's right to claim benefits when not paying UK tax is a horse of a different colour, of course. :)

MrAnchovy · 26/01/2013 12:34

"Will you and your child be living abroad with him?"

That's also relevant Grin

MrAnchovy · 26/01/2013 12:36

"For that matter you could also claim Child Tax Credits because your declared household income must be zero."

No, foreign income is included in the household income for benefit purposes.

CogitoErgoSometimes · 26/01/2013 12:43

Ah....

fidol · 27/01/2013 04:23

Thanks mr anchovy, we will be living in the UK, including my husband (he's offshore so doesn't 'live' anywhere else when he's away working iyswim)

Morally I may not claim it as if it was uk income we wouldn't be entitled anyway.

OP posts:
Bilbobagginstummy · 27/01/2013 07:07

Of course you would be entitled to claim it.

He might, as higher earner, have to pay tax to balance out your claimed money, but that depends on his tax position. They didn't take away anyone's right to claim child benefit!

SparkleSoiree · 28/01/2013 06:51

Having this issue I spoke with a specialist advisor in the tax office at the beginning of January and was advised that as my DH is not a UK tax payer our CB won't be affected. We live in the UK. They did confirm your thoughts about still claiming CB in order to cover pension payments up until the youngest child was 9. (IIRC)

fidol · 28/01/2013 10:39

Thanks sparkle, just what I was looking for.

OP posts:
MrAnchovy · 28/01/2013 12:40

Beware fidol that Sparkle's DH may have different circumstances to yours, you should check with your accountant.

"They did confirm your thoughts about still claiming CB in order to cover pension payments up until the youngest child was 9. (IIRC)"

Note that (i) when you claim CB you can elect not to receive it which establishes your eligibility for credit towards the basic state pension without actually receiving the benefit; and (ii) this credit continues until the youngest child is 12 (or you cease to be eligible for CB in respect of the child).

SparkleSoiree · 28/01/2013 20:42

Ah MrAnchovy - my memory let me down! It was 12yrs not 9. Grin

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