Salary approaching 50k - talk to me about child benefit

[MissusMaker]

So following his annual pay rise DH's salary is approaching the 50k mark - not quite there yet.

I'm a SAHM, zero salary (I do receive carers allowance if that's relevant?). We receive child benefit for 2 DC - no other benefits.

Assuming the next pay rise pops us over the £50k level what, if anything do I need to do? Will the money be taken out of DH salary automatically? Will we have to do a tax return?

It’s not his gross salary needing to go over £50k but salary after deductions like pension contributions (but not tax).

You need to keep claiming it to protect your state pension, he will need to fill in a tax return to pay a proportion of it back. Or he could up his pension contributions and avoid it.

You can stop claiming it. We never claimed it at all and it’s never presented an issue for us.

@ChristmasSpirtsOnTheRocksPleas

If you aren't working, you should claim to get your NI credits to claim your state pension.

you should claim it - to protect your pension. If the salary is too high, you will get NIL award, but it will still register for the pension contribution.

@noblegiraffe You can opt to not receive the child benefit money but you will still receive the 'stamp' towards your state pension.

If he only just goes over £50k (gross-minus pension contribution) then you submit a tax return and repay a percentage.

Yes, it’s salary after deductions.

www.moneysavingexpert.com/family/child-benefit/

This explains it well.

Is it gross or net? I earn over 50k and when I wrote to the child benefits to claim I was told I couldn't claim or wasn't entitled

I will read that link, thank you. That is gross so looks like we won't have to worry for a while. Also I believe that claiming carers allowance protects my pension so that's not an issue.

If your dh makes extra pension contributions and then it goes below the 50k and you can still claim CB. It’s only gets reduced after 50k.
If he earns over 60k you don’t get it at all.

Your pension will be protected because you're claiming careers allowance.

Really useful link, thank you. I will revisit this when salary minus pensions contribution is approaching 50k. I'm happy to receive it and then pay a proportion back, I don't see 60k net happening anytime soon so I will be sure to stay on top of this - appreciate everyone's help.

He can just up his pension contributions to bring his gross pay back down to under 50k. You’ll still have the same amount of money to live off every month but he’ll get a better pension pot.

When we talk about pension contributions are we talking about contributions paid out of his net pay or are we also talking about pension contributions taken from his pay as part of for example, a DC company pension scheme?

It is his GROSS pension contribution.

If he pays via salary sacrifice then it is the amount of his pension contribution (generally on the left of his payslip), if he pays it out of his net pay then gross it up. (Pension contribution x 1.25)