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

@LIZS

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.
Never done a self assessment ever. Never had to before. Confused
OP posts:
LIZS · 29/01/2022 21:37

Even if he is over for 2021-22 the tax return is not due until this tine next year. He can call hmrc and register to be sent a paper form (deadline end October 2022) or online (end January 2023).

beautifullymad · 29/01/2022 21:43

You'll only be paying a small portion back. It's a sliding scale from 50K to 60K. Your husband has only just exceeded that. So at a guess maybe 20% back?

The HMRC will know you've received child benefit and your husband has earned 52K. Ring then and tell them. You'll not be asked to pay it back until next year as it's calculated a year in arrears.

Next year up the pension contributions to offset the £2k.

But yes, you do owe it and they will be asking for it. Better to put the money aside now as you have lots of time to do this.

I put the CB into the tax account immediately. Then it gets paid back.

NellWilsonsWhiteHair · 29/01/2022 21:45

I've just done mine for last year (20/21), based on salary v similar to your DH's. Kicking myself for not doing it sooner - I think doing it by end Dec means you can put it against the following year's tax and effectively pay in instalments, doing it this close to the end Jan deadline meant I had to pay back a lump sum. It was a super easy process though which was a relief.

I think HMRC sent me a letter nudging me to register for SA for this reason, which suggests they're fairly clued up and unlikely to not notice anyone keeping quiet. I am the claimant and the earner though, might be slower in a household where CB claimant and high earner are two separate people.

LittleOwl153 · 29/01/2022 21:51

So he needs to do a self assessment tax return before end Jan 23. So you have time.
There are a few other expenses that count - so paying into any pension - it could be his or it could be yours - but make sure it comes from his account not yours.
Leave it till next week as most accounts are frantic to get to this year's deadline on Monday- then take some advice.

EasterIssland · 29/01/2022 21:58

@daisiesonmydress no. You’ve to do the self assessment

EasterIssland · 29/01/2022 22:00

@beautifullymad

You'll only be paying a small portion back. It's a sliding scale from 50K to 60K. Your husband has only just exceeded that. So at a guess maybe 20% back?

The HMRC will know you've received child benefit and your husband has earned 52K. Ring then and tell them. You'll not be asked to pay it back until next year as it's calculated a year in arrears.

Next year up the pension contributions to offset the £2k.

But yes, you do owe it and they will be asking for it. Better to put the money aside now as you have lots of time to do this.

I put the CB into the tax account immediately. Then it gets paid back.

I’m paying 600 out of 1.1 I think back. On a 54k salary.

There is a calculator to see how much you owe

hartof · 29/01/2022 22:18

Yes just happened to a neighbour he's had to pay them back.

Original poster
daisiesonmydress · 29/01/2022 22:19

So for this tax year 21/22 I can offset in 2022 up to Jan 23 then submit?

OP posts:
LIZS · 29/01/2022 22:21

What do you mean by offset?

LIZS · 29/01/2022 22:26

There are only two months left of the 2021/22 tax year so limited opportunity to reduce this liability now, but yes you don't need to repay anything until Jan 2023. You can change things from April 2022 onwards so that any future liability reduces or just opt out of payments if it is likely to be repayable in full.

BeautifulTulips · 29/01/2022 22:40

Am I right in thinking that if pay after pension goes out is less than 50,000 you keep child benefit even if you earn over that amount?

EasterIssland · 29/01/2022 22:41

@BeautifulTulips

Am I right in thinking that if pay after pension goes out is less than 50,000 you keep child benefit even if you earn over that amount?
Yes. That happened to me 2 years ago. It was 52 but with pension went below 50 so didn’t pay anything
Original poster
daisiesonmydress · 29/01/2022 22:46

@LIZS

What do you mean by offset?
I mean if I pay pension payments in April 2022 onwards it reduces the previous year? I doubt it but asking.

So 21/22 52k
22/23 45k

So overall I'm below 50k

OP posts:
EasterIssland · 29/01/2022 22:47

You’d return money for 21-22. You’d not return it for 22-23

MissMaple82 · 29/01/2022 22:48

@ Dementedlixie - of course it's fraud, don't be so stupid!

BeautifulTulips · 29/01/2022 22:50

EasterIssland Thank you, I'm now earning mid 50s, (but not for the whole of this tax year) however by the time my pension is taken out I take home less than 50k. I had a brief panic then in case I was going to lose child benefit!

dementedpixie · 29/01/2022 22:52

@MissMaple82

@ Dementedlixie - of course it's fraud, don't be so stupid!
In what way is it fraud? Its you that's being stupid!
Troublesometooth · 29/01/2022 22:52

If you earned over £50k from April 2021 to March 2022 then you need to do a tax return and pay the bill by the 31st January 2023. If you do this by a certain date (I can’t remember which) you can opt to pay it back through your tax code in 12 instalments instead of as a lump sum.

If you earn £45k from April 22 to March 23 you won’t need to do one that year but as you will be registered from the previous year you will probably be prompted to do one anyway but won’t owe any money back.

BeautifulTulips · 29/01/2022 22:54

@Troublesometooth

If you earned over £50k from April 2021 to March 2022 then you need to do a tax return and pay the bill by the 31st January 2023. If you do this by a certain date (I can’t remember which) you can opt to pay it back through your tax code in 12 instalments instead of as a lump sum.

If you earn £45k from April 22 to March 23 you won’t need to do one that year but as you will be registered from the previous year you will probably be prompted to do one anyway but won’t owe any money back.

Is this earnings after pension, or total earnings? That you need to do a tax return on?
Troublesometooth · 29/01/2022 22:57

@BeautifulTulips after tax and pension if the pension is taking from your wage.

There are some complications with pensions that I don’t know much about though. If unsure it’s always best to ask the CB people.

LIZS · 29/01/2022 23:07

No you cannot take one year's liability over into following year. Each tax year is separate.

LIZS · 29/01/2022 23:10

@BeautifulTulips total gross, then the form includes deductions and other non paye income ie. Interest from savings, rental income

EasterIssland · 29/01/2022 23:14

@BeautifulTulips

EasterIssland Thank you, I'm now earning mid 50s, (but not for the whole of this tax year) however by the time my pension is taken out I take home less than 50k. I had a brief panic then in case I was going to lose child benefit!
You don’t lose it until you take 60k home.
EasterIssland · 29/01/2022 23:15

This website is quite helpful
www.gov.uk/child-benefit-tax-charge

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