Child benefit on earnings over £50k

[Mummatobefeb2022]

Hi,

So my daughter was born in February 2022 and I'm just filling out her child benefit form.

My salary is £55k, and after pension contributions this was reduced to £51k.

I'm currently on maternity leave and intend to take a year off, and returning next year on 3 days a week, reducing my salary below the £50k mark.

Shall I tick that I am a higher earner even though this year and forthcoming years I won't fit in this bracket any more?

If I do tick that I am a high earner, how do I then go about paying back some of the benefit? Do I need to do a self assessment? I'm thinking for the sake of Feb - Apr I may be worth holding off claiming and start the claim in a next tax year.

Hope this all makes sense!

Thank!

Yes, you'll need to do a SA but it's really simple. I think for a salary of £51k you'd pay back hardly anything.

Would you be over £50k in the tax year up until April 2022?

Between £50 and £60k you only pay back a proportion of CB (10% per extra £1k) and then it all gets paid back once you reach £60k.

If earning over £50k and claiming CB then you need to register for self assessment to pay back the extra. As your taxable income is only just over £50k it would be worth claiming as you'd only pay a small amount back

Claim it now, it gives you NI credit for time not working. Earnings to April won't take you over the limit, unless your h/p earns more than 50k. You can then opt out of payments next April if you are likely to earn more again in 2023-4 but you could still retain some of that if you kept the payments going and Self Assessed in January 2025.

Thank you all, really helpful

Definitely claim. Once you go down to part time and under £50k you won’t pay anything back. If you’ve only got salary income and the child benefit to pay back the self assessment tax return is very simple, it won’t take you long.

You do need to consider your h/p income if relevant. Even if you claim cb and are under the limit they may need to repay some or all via tax return if they earn above £50k.

Do you live with a partner? How much do they earn?

Crossed posts with @LIZS 😆

DP earnings are less than £50k so no issue there.

Thanks all for you advice I'll fill out the form tomorrow if little lady allows me 5 minutes peace