Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Can anyone help me- Child Benefit Query

58 replies

forallthetea · 06/12/2021 01:34

DH has got a new job he'll now earn over 80k before any deductions I've just realized I don't think I'll be able to receive child benefit anymore.
We also have just had another baby which I haven't claimed for as yet.
Does this make any difference to the threshold (having 2 children)?
Can you still get any of the benefit over 80k?
Anyone any experience of this?

From what I can find online it states you'll still get it but have to pay it back in form of a tax return but I think it'd be easier just to stop it.

Also seems such an unfair system basically both of us can earn £49,999.99 and still claim the full amount but I may be wrong about that!

OP posts:
FlowerArranger · 06/12/2021 01:40

Do not stop it!!

Claiming CB means you get NI credit for your state pension.

Original poster
forallthetea · 06/12/2021 01:43

Thank you @FlowerArranger but won't he have to do a tax return every year to pay it back?

So basically just set it aside every month and remember to do the tax return?

OP posts:
BeastOfBODMAS · 06/12/2021 01:50

On the form for a new claim, there is an option to have the NI credit but not receive the CB payment if you/partner are a high earner. This means you don’t have to do a tax return.
I think to add an extra child to an existing claim you ring up, so you could ask about switching to the waive the actual payment option.

AlwaysLatte · 06/12/2021 02:05

Do not stop it!!Claiming CB means you get NI credit for your state pension.
It's ok, you can sign in and pay the missing instalments. I signed in to update mine as I went from SAHM to retired and suddenly realised my payments wouldn't be up to date, so I just made a payment for those missing years.

Lovemylittlebear · 06/12/2021 03:35

I was going to ask how this worked. My husbands salary has just gone up to £47k. He will start to do on call and overtime soon. I don’t think that will take him up to the 50k but if we were to get lucky and he get a decent bonus (haven’t been in a job with them before so not sure what to expect) then we will be over the 50k. Please can anyone explain how it works in terms of what to do when you know you will be over? My income took a nose dive due to Covid (limited company) and we just had another baby. I’m returning to work from jan but nothing compared to precovid income. Maybe 16k before expenses and tax. Thanks 😊

Yogaandcocoa · 06/12/2021 03:40

I think I read if you earn over £50k but less than £60k it still worthwhile but if you earn over £60k then you'll be paying it all back.

I earn £55k and haven't worked out how much I'll be paying back. I'm guessing half.

Original poster
forallthetea · 06/12/2021 04:07

From what I can find on the government website as long as both incomes are below 50k you get it all.

From 50-60k it depends (doesn't actually say at what rate you lose it)

Also wasn't clear that over 60k you totally lose all child benefit but it seems that way when you put it in their calculator

From what I can gather you can either still take it do a tax return pay it back and it may include a fee

Or fill in a form that you aren't taking it but it'll still count towards NI pension contributions and makes sure your child will get their NI number at 16

Nothing is very clear though on the government website but that's what I make of it though I doubt I've got it all right!

OP posts:
Original poster
forallthetea · 06/12/2021 04:11

And if I am right it's a totally unfair system as you and your partner could each earn 50k so a total combined income (before deductions of 100k) and still get all the child benefit.

However, one person can earn 60k and lose it all while that might be your total household income.

How does that make sense?!

OP posts:
RavingAnnie · 06/12/2021 05:08

@forallthetea

And if I am right it's a totally unfair system as you and your partner could each earn 50k so a total combined income (before deductions of 100k) and still get all the child benefit.

However, one person can earn 60k and lose it all while that might be your total household income.

How does that make sense?!

It doesn't. You are correct, it's completely unfair.
PhilCornwall1 · 06/12/2021 05:27

You can opt out of receiving the payment. We do this, as it makes life easier. For ages we were just paying back, which was a pain in the arse in the end.

Yogaandcocoa · 06/12/2021 05:29

You're right OP it is unfair. It would make more sense to set a combined threshold.

4amstarts · 06/12/2021 05:34

the system isn't fair and I'm surprised it hasn't been changed in all these years

If you are close to £60k I'd say claim it and pay it back - there are talks about raising the threshold in the coming years as it hasn't changed since it was brought in 7 years ago

Since he earns £80k I wouldn't bother and just tick them box not to receive it

Monkeytapper · 06/12/2021 05:38

Yes, opt out of receiving payments but keep the claim live so you get the pension credit, we did a tax rerun each year previously but was a faff, much easier to just nit receive it at all

bbn81 · 06/12/2021 05:38

If you earn between 50 and 60k you pay back 10% for every 1k you earn so the poster who says they will pay back half on 55k is correct. Not change in threshold for 2 children. We have ended up doing the tax return as there would be a point where we would not be receiving the benefit but would still be paying back for last year. Because my DH pay gradually increased he has only recently got to over 60k and with a smaller bonus due to covid may have dipped back under so it's not always as simple as just stopping the child benefit.

Lovemylittlebear · 06/12/2021 09:13

@ bbn81 do you mind me asking how you work it out? Sorry for sounding stupid. I don’t want us to get caught out as money is very tight now that my income is down by over half.

Would it be April-April and work out what have been paid gross before tax (to include bonus?) and then you pay ten percent on every extra 1k? So for instance if he earned 51k we pay back ten percent of what we had been given over the year? How do you apply to do a tax return? Sorry to sound so silly? I have always paid an accountant to do mine when I have been self employed and had a limited company so no idea how we get started with this.

thatstheloveiwantiwantlove · 06/12/2021 09:19

You can go on the government website and enter your salary info etc and it will tell you how much you can expect to repay

FlowerArranger · 06/12/2021 09:45

Filling in a tax return is quite simple for most people who are employed and don't have a lot of investment income that isn't tax sheltered, unless there are other complicating issues. If you register at the .gov website and choose the self-assessment option you'll find and lot of useful information and helpsheets.

What I would like to add, apart from the importance of women claiming child benefit even if you can't actually get it or have to pay it back, is that couples where one is a SAHP should start a private pension for the non-earning partner. Even small amounts, invested in a SIPP via something like a Vanguard tracker fund will grow to a sizeable pot by retirement.

There is real poverty for a lot of women in retirement, even today, because many women never think to protect themselves rather than relying on their husband's pension. Even worse if not married.

mongoosebaby · 06/12/2021 09:50

If you aren't sure give them a ring. They were surprisingly helpful on the phone, although I had very low expectations based on other HMRC calls

MadeForThis · 06/12/2021 09:58

Submit a claim for your new baby. You get National Insurance credit for each child so make sure you get the credit for all the time you are entitled.

You can claim child benefit but opt to not receive the money. Your DH then will not need to submit a tax return.

ChessieFL · 06/12/2021 10:05

Don’t forget that it’s whether taxable income is over £50/£60k, so if you or your partner is only just over that threshold you might find that once your pension contributions are deducted you’re under the limit and won’t have to pay anything back (or pay back less than you thought).

Yellow85 · 06/12/2021 10:10

It really is a stupid system. I earned below £50k in base, however a really good bonus year surprisingly too me over the 60k.

I couldn’t have know that was going to happen, called ti stop the payments and I’m now stuck paying a years worth of it back to them. Whilst my husband was furloughed or on nil pay.

I’ve just stopped it completely as it’s not worth the bloody hassle of the tax return - which you have ti register for but then call and sit on hold for ages if you don’t actually need it (go over 50k). There’s no way to do a nil return on it.

Lovemylittlebear · 06/12/2021 10:44

Just reading some of the comments about national insurance. Our payments are in my husbands name…for no reason other than he had the pen when we initially signed up for child benefit. He has an employed job and a pension where as I’m yet to start a private pension. Should we change this abs have it in my name? X

ChessieFL · 06/12/2021 11:48

Are you working and paying NI lovemylittlebear? If not then yes change it to your name so you get the NI credits towards your state pension. If you’re working and paying NI you’ll be getting the state pension credits anyway so it doesn’t matter who gets the child benefit. Private pensions are irrelevant for this, everyone should ensure they’re getting all the state pension credits they’re entitled to.

lastchristmasigaveyoumyheart · 06/12/2021 14:20

@forallthetea

And if I am right it's a totally unfair system as you and your partner could each earn 50k so a total combined income (before deductions of 100k) and still get all the child benefit.

However, one person can earn 60k and lose it all while that might be your total household income.

How does that make sense?!

But if you are both working you are likely to have higher expenses, eg travel costs for 2 adults, will have to pay for child care etc. If one parent is not working then no childcare.
Lovemylittlebear · 06/12/2021 14:44

@ ChessieFL thanks for the reply. I have had a limited company and have paid national insurance over the years but have also had x4 maternity leaves (equivalent of maternity allowance) so not sure what I paid during those times (although it was never for too long as I have always had to go back to work more quickly then I would have liked. This thread has been really helpful in understanding things a bit better…was worried about being caught off guard with having to pay back money unexpectedly but I think I have a better understanding now thanks x