Child Benefit

[bigfamilygrowingupfast]

Hello, I'm writing this on behalf of my cousin. One of her friends has suggested she applies for child benefit, but both her and I were under the impression she won't be eligible. We are both sat here stumped, with the government website completely unclear imho, so hoping someone can help! We've also emailed citizens advice but waiting for them to get back to us.

My cousin has a three year old and also has a two month old baby. She is self employed, so pays NI etc, but is currently on maternity and when she goes back will be earning around £10-20k a year.
Her partner is employed in a business and earns over £50K a year.

Now, both of us thought that if someone in the household earned over £50,000 (or there about) you were only eligible for child benefit if the high earning person payed it back as part of their tax bill? I thought this was the case but I can't find any reliable information about this online. Have they changed it recently?

Obviously, if she's eligible she will apply for it, but she doesn't want to apply if it will effect her partner's take home pay packet.

Wise MNetters please settle this!

https://www.gov.uk/child-benefit-tax-charge

Sorry I’m just jumping onto this post too to bump it up! Trying to work out how child benefit works! I’m due to start a new job which will take my salary from £40k to £75k so im conscious I will no longer be eligible for child benefit. Do I just continue as normal and then fill in tax return next year to pay it back? Any help with this will be gratefully received.

@Frightenedbunny yes, just fill out a self assessment tax return and pay it back through that

@Frightenedbunny you can still have the claim and either opt out of payment or take the money and complete a tax return to pay it all back.

@bigfamilygrowingupfast she can claim child benefit but the higher earner would need to register for self assessment and may have to pay some back. It is tapered so 10% would be paid back for each £1k over £50K. Once you reach £60K it would all need to be paid back.

Entitlement to child benefit phases out on a pro rata basis between £50k and £60k. Over £60k you loose the entire amount.

You need to check the P60 of the higher earner, pension contributions reduce the figure.

Figure for year in P60 is the one to use.

Cousin should claim as if she's not working this will form part of her entitlement to state pension when she's older as it will be used to give her a qualifying year until youngest child reaches 12.

If the higher earner earns too much you can either sort in a tax return or there's another way to get the qualifying year without getting the money. Don't know the details on that.

It really depends on how much over the 50k threshold they are as salary sacrifice pension is taken off if they have one.
The best thing to do is look at their partners P60 form this will give them their salary which is tax deductible. You can then plug this into the govt calculator to work out if it's worth claiming or not as you have to do a self assessment tax return it's not automatic.

You can still fill in the forms and register and select the box not to receive payments which actually is important to do as the child will automatically then be registered to receive a NI number at 16 whereas it can be tricky to obtain otherwise with paperwork sent off etc.