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Original poster

DH and child benefit

58 replies

daisiesonmydress · 29/01/2022 19:50

DH taxed income has just gone over 50k. Probably coming in on his P60 at 52k. We claim child benefit for one child.

Will HMRC notice if we do nothing?

OP posts:
MoonlightFancy · 29/01/2022 19:52

Honesty is the best policy surely?

dementedpixie · 29/01/2022 19:55

Don't ignore. At some point they will catch up with you. He registers for self assessment and declares it and then pays a % of the child benefit back (if £2k over then 20% would be due back). He could increase pension payments to take him below £50k again if that's an option for you.

MaizeAmaze · 29/01/2022 19:59

They will eventually, and then will demand it all back.

Original poster
daisiesonmydress · 29/01/2022 20:01

Yes. We didn't understand the pension payment to reduce the taxed amount. Probably too late for this year but will do for next year.

I think you get fined if you don't do a self assessment.

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Original poster
daisiesonmydress · 29/01/2022 20:01

@MaizeAmaze

They will eventually, and then will demand it all back.
Really?

Oh god.

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littlebilliie · 29/01/2022 20:03

I know someone who ended up paying back a lot over an accumulation of a few years. Pension contributions are the way to go

Valdes · 29/01/2022 20:04

What did you think would happen if you claimed something you were not entitled to?

Happycow · 29/01/2022 20:04

@daisies yes - this happened to us. Ex DP didnt realise he had to do a tax return - 2 yrs later and between £2k and £3k of fines and benefit to pay ..... do the self-assessment, with HMRC its just really not worth trying to get out of it!

forcedfun · 29/01/2022 20:08

Wtf ! Of course it wouldn't be a good plan to just try and get away with it.

You will only have to pay back 20% though if he is at £52

girlmom21 · 29/01/2022 20:09

Taking the risk for the sake of £80 a month is daft

Original poster
daisiesonmydress · 29/01/2022 20:09

@Valdes

What did you think would happen if you claimed something you were not entitled to?
We are entitled to it just not all of it and we don't know yet by how much as not at the year end yet.

DH salary has gone up mid way through the year and will just take us over 50k but still below the 60k 100% cut off.

OP posts:
Hesma · 29/01/2022 20:10

Yes, it’s fraud. It may originally have been unintended but you need to do the right thing or there may well be consequences in the long term.

dementedpixie · 29/01/2022 20:12

Wtf, they're not committing fraud. Dont be so dramatic

dementedpixie · 29/01/2022 20:12

@Valdes

What did you think would happen if you claimed something you were not entitled to?
They're entitled to it, what are you talking about?
NoSquirrels · 29/01/2022 20:13

Don’t stress! Do a self-assessment and just increase pension contributions for next year.

MaizeAmaze · 29/01/2022 20:14

Hang on, are you saying the tax year that finished April 2021 was under 50k?
And potentially in the tax year finishing April 2022, you will be over the 50k once pension and other tax deductible bits have been removed? In which case register for self assessment for this tax year, and deal with it before Jan 2023.

Valdes · 29/01/2022 20:14

I appreciate that @daisiesonmydress but you know that you're going to have to report and pay a % of it back. Why would you try and avoid telling HMRC that? It's only going to cause you more stress further down the line.

EasterIssland · 29/01/2022 20:16

I earnt £54 last year. I got a letter around June / July saying I’ve to do the self assessment and repay some back (around £600 it’s been). So I didn’t have to tell them anything (I’d have if they hadn’t contacted me) they already knew.

I’m paying it back via my tax code this year

HappiestHippo123 · 29/01/2022 20:41

You still have plenty of time this tax year to pay extra into a pension. You just need to work out how much.

Original poster
daisiesonmydress · 29/01/2022 20:43

DH has final salary he doesn't pay into so maybe an AVC

So much juggling.

You'd think we lived like kings talking about money like this but we really don't!

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Original poster
daisiesonmydress · 29/01/2022 20:45

@EasterIssland

I earnt £54 last year. I got a letter around June / July saying I’ve to do the self assessment and repay some back (around £600 it’s been). So I didn’t have to tell them anything (I’d have if they hadn’t contacted me) they already knew.

I’m paying it back via my tax code this year

I wondered if I did nothing if it would all work itself out.

We'll tackle it via self assessment once P60 is done

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LIZS · 29/01/2022 20:46

If it has only just changed it won't make much difference, if any, until after 2022-23 tax year. Does he do a tax return as a higher rate tax payer? You could opt out of payments from April to be sure.

Scottishflower65 · 29/01/2022 20:47

Yes AVC but you would need to do today or tomorrow as it takes a month to take effect. That’s assuming he’s paid on last day of month?
Otherwise a SIPP.

Scottishflower65 · 29/01/2022 20:51

Oh yes, as PP says, if just changed, will make no difference to this tax year assuming he’s been on 50K or less up to this month? Or is it a backdated award as see you say the p60 amount will be 52K. If it is 52K on his p60, an AVC or SIPP is the way to go.

Original poster
daisiesonmydress · 29/01/2022 21:15

No it changed about six months ago but he didn't cotton on to the impact on CB until I saw his wage slip and taxable pay to date and worked out we'll be over

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