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Original poster

Child benefit

25 replies

greyandcream · 30/03/2021 07:45

Hi, my DH and I are not clear on this.

I am on maternity leave at the moment.

DH earns £80,000. So obviously not entitled to CB. However, I understand we should be claiming it and then him paying it back through tax - is that correct?

OP posts:

Lovelydovey · 30/03/2021 07:47

No should about it at all, but it does give you an income even if he has to repay it. Up to you.

But it is worth registering for it, even if you elect for it not to be paid as this counts towards your NI contributing years and is easier to switch on again if circumstances change.

isitjustlockdown · 30/03/2021 07:51

You should claim as it will help provide your national insurance stamps before you return to work.

Your husband will have to complete a self assessment each year and you will need to pay the child benefit tax which will be either a proportion or all of the child benefit received (some pensions and taken off the salary and some pensions/gift aid/ other payments are deductible).

After deduction if the yearly income (from all sources for your DH, not you) is less than 60k you will have to pay part of the amount received back, if it is over 60k you have to pay it all back.

I just put mine straight into a separate account each month and it's there ready when I fill
In my self assessment.

idontlikealdi · 30/03/2021 07:51

To I don't have to but it makes sense from an NI perspective

sakura06 · 30/03/2021 07:54

You can apply and tick a box not to actually receive it so you get the NI credits.

ChessieFL · 30/03/2021 07:55

You can claim it but then say you don’t want to receive the payments. That will give you the NI credits without the hassle of paying it back later.

LIZS · 30/03/2021 07:59

You can register and opt out of receiving payments. You get ni credit, he won't need to repay. He should probably be doing a tax return anyway though.

Original poster

greyandcream · 30/03/2021 08:00

Thanks, that’s what I thought re NI payments.

OP posts:

JeanClaudeVanDammit · 30/03/2021 08:01

I registered and elected not to receive it, easier than farting about with repaying it.

BarbaraofSeville · 30/03/2021 08:07

What's your own NI record like? If you're likely to get 35 years contribution out of the approx 50+ years between age 16 and 67 due to working and paying NI yourself, you don't need the credits so might as well just not claim it at all.

Original poster

greyandcream · 30/03/2021 08:09

I’ve only had maternity leave since leaving university.

OP posts:

dementedpixie · 30/03/2021 08:12

Claim it and opt out of payment or
Claim and your dh pays it back using a self assessment tax return

Claiming means your dc gets their NI number automatically and also gives you NI credits

Finzi · 30/03/2021 08:15

I’d apply and tick the box not to receive it. As well as the NI credits for you, it saves the hassle of having to apply for an NI number for your dc when they are 16 (applying for CB gets them in the system so they receive one automatically).

DancesWithDaffodils · 30/03/2021 08:33

Definitely apply for it.
Whether you chose to recieve it and pay it back through your husbands tax, or just not recieve it is down to how you want to work your finances. But getting in the system is beneficial if you need to claim in the future.

sevennotrumps · 02/04/2021 22:24

Sorry for the hijack, but can anyone answer a related question? We've been claiming CB for years, and in the last few years DH has been doing a tax return to pay part of it back as he's been earning between 50k and 60k. However, this year he's getting a significant pay rise which will take him well over the 60k limit, so we'd rather stop claiming it. I'd heard, though, that I should still claim it but not get the payments, for the NI credits. I've found an online HMRC form to 'opt out' of CB, but does anyone know if that means you're opting out of the payments only or the actual claim?

LIZS · 02/04/2021 22:36

Only payments.

sevennotrumps · 02/04/2021 22:59

Brilliant, thanks @LIZS.

Starface · 03/04/2021 09:31

The other option is to offset it. You pay back CB on income net of charity payments and pension contributions. So instead of paying a horrifically punitive tax of about 60 per cent plus (40% plus paying back CB, depends on how many kids you have) you can stick it in your pension and pay yourselves later. Obvs does reduce your overall take home, but it's another choice.

sevennotrumps · 03/04/2021 09:48

Sorry @Starface, I'm not entirely following. Do you mean that we'd continue to claim it, then DH increase his pension contributions by the same amount each month, so that he's paying tax on a smaller amount of his income? (He has a TPS teacher pension if that makes any difference.) Thanks.

ChessieFL · 03/04/2021 11:53

I think Starface means that your DH could increase his pension contributions to take his taxable pay under the limit so you could continue to claim CB.

Starface · 03/04/2021 13:16

Sorry, as ChessieFL says. You have to take your net income under 50k. So more than just the amount of CB unfortunately. If you do this with a pension, you get 20 per cent back via the pension, plus 20 per cent back via the tax return. And you keep the CB.

Starface · 03/04/2021 17:31

Oh, and regards which pension. I don't know about the TPS pension, sorry. But if its anything like NHS or civil service, wouldn't pay in extra to that, you would have either a DC one, run by your TPS but different, running alongside or you could have a SIPP.

But, if your husband is paying into the TPS, you also need to pay attention to the pension lifetime allowance for pension contributions.

It sounds like all this might be a bit complex - you could consider consulting an IFA for a fixed fee. They will probably make back the money pretty quickly.

sevennotrumps · 03/04/2021 22:41

Thank you so much, we've been thinking that seeing an IFA would be a good plan. Paying enough in additional contributions to take DH's income below the 60k threshold for CB isn't an option, but I think we need to look more closely at pension planning generally.

iamverytired · 04/04/2021 09:29

Just jumping on this as I was going to ask similar - I'm still paying NI on my wage slips with my maternity pay. Do I still need to apply for the credits or does that mean I can ignore it?

dementedpixie · 04/04/2021 09:46

Do you claim child benefit already?
If not, I'd claim CB anyway as, even if you don't need the NI credits, your child automatically gets their NI number when they turn 16 without having to apply for it.

You can claim and opt out of payment if your other half earns over £60k

Ariela · 04/04/2021 09:59

@BarbaraofSeville

Until the then government decides that the number of pensioners isn't going to be supported by the payments coming in from the then current population. The rules will then change.

When I left school I was supposed to retire this year. Instead I've got to work another 7.

It's no great hardship to register and opt not to receive it, just to record that as fact with the government. Who knows how pensions will change in coming years.

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