Child Benefit

[pinkthree]

Hello,

Just wondering what to do with our child benefit payment as my partner has got a new role at work.

His new salary is £47,500 but he gets a company car allowance of £5,000 and a annual bonus of 10%

Will this take us over the £50,000? I’m not sure as the other "benefits" aren’t his salary but overall takes his income to over £50,000

If the £5000 is benefit in kind, then yes it will. I had health insurance in a previous job and it's counted as extra income. But don't forget pension contribution and other salary sacrifices too. You won't know the final until he gets his P60. Given he's close to the threshold, you will have to keep claiming and he has to file a self assessment at the end of the tax year if his P60 shows it's over £50000. Don't get caught out on not filing the self assessment. It's a common mistake and you will get fined by HMRC.

Have a look at this page, I find it from googling and it seems to explain it well www.litrg.org.uk/tax-guides/tax-credits-and-benefits/child-benefit/high-income-child-benefit-charge

@SnowAndFrostOutside thank you for your reply,

He does pay a fair amount into his pension so if after this and tax it's less than £50k is that ok?

As I think he would then be under the £50k overall

But yes will keep an eye on it

@pinkthree that's why I mention pensions. If he's paying quite a bit of contribution, he might well be under £50k. Definitely look at the P60 when he receives it. It's quite important. If you google you'll find lots of people get caught with failure to notify.

Also think it's not right that you could have a couple where each is earning 45k and they're still entitled without paying tax but because my partner is earning in total £57,250 with benefits we have to pay tax on it despite the fact I only earn £17k 🤦🏻‍♀️

Hopefully the #50k higher rate child benefit threshold will be increased in today's budget. I have a sneaky feeling it will.