Can anyone help me- Child Benefit Query

[forallthetea]

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!

If you are a higher earner its almost always worth doing a tax return to claim for professional fees, charity donations etc. I'm surprised people are so resistant to doing them.

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.

I'm not sure what you are on about, @yellow85...
Please, just make sure that if you are not earning and not accumulating NI contributions, you ARE claiming child benefit.

If this means your husband has to fill in a tax return, so be it. It really is quite straightforward.

An aquaintance of mine found herself short of NI contributions by some years (not sure but around 10 I think). As a result she now gets only £588 state pension per month (or 4 weeks?..... not sure), whereas the full pension is c. £150 more.

It is interesting that with this and the way the tax system works that if in a couple 2 people earn say £30 k each and a different couple has 1 earning 60 k and one SAHP the first couple are better off
Is that correct

It depends what you mean by better off. One earner earning £60k will pay more tax and also lose the child benefit, whereas 2 earners on £30k each pay less tax and keep the CB. However, the family with one earner are likely to have no childcare costs where’s the family with two earners probably will so overall there’s probably not much difference.

What is a bit unfair is if you have a family with two earners, one on £60k and one on £30k, who would then lose their child benefit, where’s a family with two earners both on £49k would get to keep it all despite their overall household income being higher.

Just wondering if it is deliberate government policy to encourage people (women) to work

Hi
I earn over 50k but am currently on maternity. I know I need to do a tax return usually but as I'm on maternity with dc1 I won't be earning over the 50k threshold this year. So do I not need to do one this year?

@Lovemylittlebear apologies for only just replying. Not sure exactly how the amount you owe is calculated and how accurate but I will add that you do not have to pay the whole amount amount back as a lump sum. When DH fills in his tax return he applies to have the amount amount owed taken from the following years tax. He then pays more tax to take account of the child benefit payment.

@ChessieFL

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).

This is very helpful. Thank you.

Also agree re checking pension and charity contributions. I earn £60k just and just get CB as my pension costs are high and increasing rapidly percentage wise. I do pay a bit extra but tbh, this is mostly mandatory on my scheme. Also donations to charity count although tbh I just keep a record but have never had to include as pension keeps me under. I check each year on their calc as I find it hard to believe but it is accurate. I am paranoid about this.

@babyturtle19 I think if you usually do a tax return then you will still need to do one because HMRC will be expecting it. Probably safest just to do it, doesn’t take long if your affairs are pretty simple!

[quote ChessieFL]@babyturtle19 I think if you usually do a tax return then you will still need to do one because HMRC will be expecting it. Probably safest just to do it, doesn’t take long if your affairs are pretty simple![/quote]
Thanks. I don't usually do one as it is all done through payroll at work, so this would be my first. I guess I should do it anyway even if it means no payment is needed

If you’ve never done one before and you won’t be earning over £50k then you don’t need to do one.

But why do you have to do a tax return if you earn over £50k and claim CB?? I really don't get it but tbh I probably haven't tried hard enough to work it out!

Higher rate tax payers rarely pay tax accurately through paye especially if there are taxable benefits in kind or making high pension contributions, for example. @forallthetea , register your baby with hmrc and either receive cb payments for both dc and set it aside for him to repay as necessary in January 2023 via his tax return or opt out of receiving payments for both when the new salary starts. Registering your dc protects your ni contributions, the payment of cb itself is not relevant if you don't need it.

@Yogaandcocoa once your (or your partner’s) taxable income goes over £50k you start to lose your entitlement to child benefit, so you have to do a tax return so HMRC can work out how much CB you need to pay back.

@ChessieFL oh so it is purely to work how much CB... that makes sense

My salary went from £50 to £55k at the start of my mat leave but then my income for this year won't be near that as I only had a few months on full pay at that higher pay so I'm hoping I don't have to pay anything back?! And then if I go back part time I could get my salary below £50 again 🤔

£50K not £50

Yes it’s the total taxable income in the tax year that’s important so you’re probably ok.

True, if ops dh is getting a significant pay rise midway through 2021/22 then he may not hit the repayment level until January 2024(for 2022/23 tax year) to repay it in full.

@littleowls83

If you are a higher earner its almost always worth doing a tax return to claim for professional fees, charity donations etc. I'm surprised people are so resistant to doing them.

Definitely this ^

It really is a very quick process and these days we end up with HMRC owing DH money back each year for because if charity donations.

@user1487194234

It is interesting that with this and the way the tax system works that if in a couple 2 people earn say £30 k each and a different couple has 1 earning 60 k and one SAHP the first couple are better off Is that correct

That’s right. It’s a very unfair system.

Personally I’m all for the OPTION of paying all tax as a couple. As a low earner (I don’t pay tax) if would be great if we could use my unused allowance to reduce DHs tax bill.

@BuggerOffAndGoodDayToYou you can do that to a small degree if you are married:

www.gov.uk/marriage-allowance

[quote Haus1234]@BuggerOffAndGoodDayToYou you can do that to a small degree if you are married:

www.gov.uk/marriage-allowance[/quote]
Not if one of you earns over £50k you can’t.

TBF I can't support joint taxation,women fought against that for years

@forallthetea the reason why one family can keep child benefit and earn £49k each and one family lose it on £60k is because we have independent taxation. Until 1992 a woman’s income was taxable on her husband (this is why the older generation the wife’s pension is dependant on the amount of NI paid by her husband).
As PP says, women fought for years for independent taxation so their husbands didn’t know their income. It would be too expensive to change the tax system to account for child benefit because no ones tax records are joined.
Personally I think removing household taxation is a good thing, my mum ran her own business in 70’s/80s but all of her income was taxed on my dad - how was that fair?
They do have joint taxation in the USA but once you elect to be jointly taxed it happens for life.