Child benefit tax

[MattWanksock]

Can anyone help with child benefit tax once someone is earning over 50k please? I've found a link saying that you have to register for and then fill in a self assessment form.

Am I right in thinking that you don't need to do this until the October of the tax year after you started earning 50k?

Is that then taken in a one off payment or monthly by adjusting your tax free amount?

I can see you can opt out if you don't want the hassle (frankly I don't) but it doesn't say anywhere on gov.Uk how much you forfeit as tax so I can't make an educated decision as whether we pay the tax or opt out.

Can anyone who has been through similar offer advice please? I am terrified we will appear in the daily Mail in 10 years with sad faces because we did this wrong and they demand all our child benefit back.

Thanks!!!

So it depends how much the higher earner earns. If over £60k (after things like pension contributions) then no point taking CB as it will all be paid back in tax. If earning between £50-60 then you get to keep part of it on a sliding scale. You need to register by the Oct yes, and have to return full SA by end of the following Jan.

Thank you. Do you by chance know what the sliding scale is? That's what I struggling to find. I don't want to lose out for no reason but if it was say 55k and took 50% of it with all the additional hassle I'd be in a much better position to make a decision.

Is it not 10% for each £1000 you earn over £50K so by the time you get to £60K you pay it all back? So earn £56K you pay back 60%

It is the amount net of deductions like pension contributions. You can opt out of receiving the payments if you are likely to repay it all (over 60k). Current tax return due end January is for the 2019-20 tax year. You would need to register to make a Self Assessment with the tax office.

Found this

www.gov.uk/government/publications/high-income-child-benefit-charge-data/high-income-child-benefit-charge

There's actually a bit more to it than that. For example if you are in salary sacrifice schemes that affects your earnings so you may keep more than you think. Definitely worth running with it for a year to see. You have to register to be able to fill in an online tax return so if you would owe £ for the 19/20 tax year register now & you might still make it in time for 31 jan deadline

If you are just over the 50k limit then if you increase your pension contributions to bring you under 50k you ca keep the child benefit.

www.gov.uk/child-benefit-tax-calculator

Tells you how much the tax charge would be.

Self assessment tax is payable on 31 January after tax year. If you meet certain conditions you can have it collected through your tax code on PAYE instead.

If you're not working, you can elect to claim CB but not be paid the cash rather than ending the claim. That way you still get the NI credits towards state pension but don't have to deal with tax returns and paying the child benefit back.

I find the LITRG website good for information and explanations on stuff like this.

Thank you all so much! Those specifics really help!

The calculator won't work as the time frame isn't there yet as the raise only just happened - but I was quite scared to leave it til the end of next tax year which i think is when it would come i to effect from what I know of tax.

I think pension and child care vouchers may push it under. The end of year p60 is always far less than gross salary.