Child Benefit once over threshold?

[BoyMeetsWorld]

Hi sorry to be stupid but I'm really confused and the girl on the phone at HMRC has just confused me even more.

We've got 2 kids, both DH and I work full time and are both just below 50k each gross so have always been fine for the threshold. I get the standard 136.50 pm child benefit which is all I get as 'my' £ each month, everything else goes into the bills, kids, mortgage, food yada yada.

For the first time this year, DH has been in a job that also pays commission. These are not guaranteed and vary massively month by month, year on year. In this year just gone though he's had about 6k of bonus on top of his 50k gross salary...taking him over the threshold.

To my understanding, that means for the next tax year we need to pay back some of my child benefit.

Please can you help me figure out:
a) how to work out how much to pay back as I think it's only a proportion, not the entire amount
b) when we need to pay it by
c) does it need to be paid as a lump sum or can it be deducted from future child benefit / salary
d) how the heck we manage this going forward assuming DH stays in this job

I know we're very lucky to be in this position (although where we live in the South East it doesn't go far, believe me!) but I really do wish they just automatically deducted it from what I get instead of making us figure it out and have to pay back a huge lump sum I may not have...

Madmum it won’t change the amount paid to you but your oh will have to complete a self assessment and pay it back

We use an accountant every year, he is a company director, so hopefully the accountant is wise to that. I do not put down my family allowance on my form.

You’re earning over £100,000 and the only money that doesn’t go on essential spending is the child benefit? You’re doing something wrong with your budgeting. I rent in London so I know what things cost here but that’s mad.

This is why the child benefit system is wrong. I don't work because my son is disabled but can't claim cb because my dh earns just over £50k. But a household with a joint income of £100k can still claim it.

Where is the rational in that.

You can claim child benefit. In fact everyone could claim it. In a family with an earner on a high income some (Or all) would be paid back. Only a percentage is paid back between £50-£60k with it all paid back once you reach £60k

Your husband' tax code changes to take into account the child benefit he will be repaying. You don't repay anything.

It's been set up like this purposely.

You yourself can opt out of child benefit if you choose, but little point as you will still get some.

No one else can opt you out.

He will have to repay it the year after through his tax code.

We reached a similar situation a few years ago and I now transfer the child benefit straight from my account to my husbands tax account. It's easier this way.

On an extra 6k over the threshold he will be paying approx 2/3rds of what you receive each month back. The HMRC will want a lump sum.

If I were you I'd transfer that 2/3rd into a savings account until you are sure it's the right figure. Otherwise it's a bit of a shock as ours was in that first year.

If you just earn over then increase your pension contributions to take you below again

Bloody hell no wonder the benefits system is in the shit when people who earn over 100k can get around the cap on child benefit by increasing their pensions.

Maybe it’s just me but that stinks. Claim the benefit and give it to a food bank if you must, but keeping it for your own luxuries as all your other money goes on “essentials”? Fucking hell.

It's for people who earn just over £50k so calm yourself down dear. Those above £60k will have to pay it all back

I have just done this, It is so confusing.

If you register for self assessment and then fill in a tax return it will automatically calculate how much you owe them. You can then choose whether to pay it back all at once or if you want your tax code amended to pay it off through PAYE.

I just to pick up on something, you say that the child benefit is your only free cash.

Do you mean that is your families only free cash, or your share of it? Which just happens to be 136 a month?

On every dh gets paid more, you should both have more free cash. The extra that dh earns will be more than what you will lose from child benefit. Are you sharing fairly?

You can only pay it back through your tax code if you submit by end of december

@Chardeemacdennis1 I completely agree with you!

For anyone who thinks there is no point in claiming CB if they don't work and their DH is a higher earner who takes them over the threshold please DO claim it if you have a child under 12 even if it all has to be repaid.

This is because receipt of child benefit counts as national insurance credits towards your state pension link here which also includes a link to enable you to calculate how much has to be repaid.

You can also claim child benefit and opt out of payment if one of you earns enough to have to pay it all back

I thought you had to pay back if just one of you earnt over the 50k. I didn't think you both earn 50k each. Amazing

Sadly we are not making anywhere near 50k between us here

If you just increase your hubbys pension contributions then you can avoid it altogether. More in the pension then so win win 😁

It is repayable if either of you are earning over 50k.

A proportion is repayable over £50k so you get to keep some of it. You only repay all of it if you reach £60k

If you just increase your hubbys pension contributions then you can avoid it altogether. More in the pension then so win win 😁

Yep, win win for the family on 100k+

Not so win win for the low income families having their benefits cut at the opposite end....

Does your husband claim childcare vouchers via salary sacrifice? If so, that and any existing pension contributions may be enough to bring him under threshold anyway, as both are deducted before the CB threshold is assessed.

I don’t disagree with those who don’t like the system, but I personally do this and my charitable contributions are between me and my own conscience.

I put additional money into my pension now, and still get CB. However I guess I’m therefore far less likely to be claiming pension credit in future. I don’t know if that’s a valid fiscal policy, or just an attempted* vote winner.

*only attempted in my case, because I’d still vote for my preferred party even if they took it away

Yep, win win for the family on 100k+

Not so win win for the low income families having their benefits cut at the opposite end....

Yes how dare they try to save for their old age when they already pay a fortune in tax ....

My heart bleeds.

Isn’t that exactly the same as hiding income to claim benefits? Or hiding savings in order to claim universal credit. Morally at least.

@reallyanothernotreally because it’s legit ad totally transparent. Anyone can make extra pension contributions. It just so happens that if you earn over the threshold and you decide to make extra pension contributions themn it takes you below the threshold. Tbh I don’t agree with taking it off anyone at all, it was given to worn to help support their children and these days there are still women whose husbands control the purse strings and so the only thing they get is cb