Child Benefit Charge

[Bluepomegranate1]

Thoughts please. My DH has to do annual self-assessment, I don't. He earns more than me and is well above the threshold for payment of the Child Benefit Charge through his tax. In all family bills, he pays 60% and I pay 40% to reflect the differences in salary. The CB is in my name and paid into my account. He figures that it isnt fair for him to have to pay the charge when its me who received the monthly payments, so asks me to give him the full amount received in that tax year, which he then uses towards his tax bill. I figure it isnt fair that Im penalised financially for the fact that he earns more than me, and over the threshold. Based on my salary rather than his, Id only have to repay around half of it. What do others do where the partner not receiving it is the higher earner? Thanks.

Others consider that a family has one joint pot of money which you share equally.

That doesn't sound like much of a marriage does it? But if you insist on doing money in that way, then absolutely you claim it, and he pays it back. I suppose it'll cost him more if you were to pool finances and stop claiming, so use that if he needs reminding how much he's benefitting.

Surely you’re a family so all money is for your “team” and not everyone out for themselves.

CB is in my name and I am the higher earner, so it doesnt affect us. I would find it unfair if I had to pay the bill but CB was paid to DH. I would ask DH to pay me the amount which would need to get paid back.

If as a family you’re having to pay it all back it doesn’t make sense to claim it at all.

Wasnt asking for a judgement on my marriage - was asking how others manage it on a practical level.

@CantHoldMeDown

You've missed the point in that the OP's money is separate so SHE benefits from it.

But I still claim it because I stick it in a savings account, I earned £100 off it last year, worth it for a 5 min self assessment form. It then ended up being more beneficial when they changed the thresholds so I didn't have to reapply, I have to pay it all back for last year, but I will be able to keep some of it for 24/25, I assume OP's DH could be the same if he's only earning 1 fifth more than OP and she's eligible.

Wasnt asking for a judgement on my marriage - was asking how others manage it on a practical level.

Well you got that too, bonus!

Wasnt asking for relationship advice - my DH is highly secretive with money hence asking what others in same situation do (rather than for general observations on my marriage). But thanks.

What a weird reply. I was asking for practical advice from people in same situation.

Being secretive with money is a red flag. He cannot force you to cancel cb.

If your DH earns more than you and the CB paid to you is used as family money, I would suggest you pay it back as per your spilt on other expenses 60 40.
You could going forward suggest the CB goes into a pot and isn't touched apart from to pay tax bill, but you only put 35% towards household and he does 65%.

Can you repay it 60/40 in the same way as all other expenses? You acknowledge that you would pay back about 50% if it was based on your salary.

We are an all in family, so this isn't based on my experience, but by the financial arrangement you already have.

Husband earns in between the thresholds, I am way under. Although I’m the named recipient, It comes into our joint account, I move it to a ring fenced savings account and we pay the charge out of that. Once the charge is paid through his SA then whatever’s left from that tax year plus interest goes into our “joint budget” and is used for the kids. Yes it means we don’t use it til the next tax year but it’s not essential to getting through the month. TBH we’ve only started getting it this tax year so remains to be seen if it works or not!

This would be the best solution I think if you insist on having separate finances despite marriage and kids

What a weird reply. I was asking for practical advice from people in same situation.

Well I think you'll find not many people are in this situation so I hope you take note of what that says in itself. But I did state what I thought would be fair to do in your situation from my point of view as the high rate payer, and that is for you to keep it and him to pay it off.

If you're going to act like separate people financially that should extend to the pros and cons, he's benefitting from keeping more of his pay back for himself, so why shouldn't you benefit from being a lower rate tax payer?

If he earns well above the threshold and you don't, I'm going to hazard a guess that the 60/40 split in finances isn't actually proportionate to your earnings? If he begrudges paying it back maybe he can give you the money each month that you're missing out on? If he shared finances or saw it as family money then sure, makes zero sense to claim it, but as he isn't prepared to do so and is secretive about his income, then why should you be £100+ down a month?

Why are you bothering to claim it at all, given you have to pay it back?

Stop claiming it, removal of issue.

I can see why he would be asking for the money to repay it - as you have been given money by HMRC, which he is then having to pay back.

I'm guessing he will not make a contribution towards dc from his income in lieu and op relies upon it.

@MidnightPatrol so he benefits from having more disposable cash that he gets to keep for himself, and the OP loses out on CB she's entitled to because her husband earns more, but doesn't share it fully?

Also remember the thresholds changed this year. Current tax returns are for 24/25. He might be entitled to part of it for 25/26?

Really? DH gets ours and I'm the higher earner. I paid the overpayment back myself (doesn't apply now).

OP gets money in every month. thats her income being topped up. she will still get more money in if she gives her husband the amount needed to be paid back.

She’s not entitled to child benefit, because her husband earns above the threshold. That’s how it is calculated.

She’s losing out on it because they don’t meet the criteria. As to whether that’s right or wrong is another discussion.

It isn’t fair for one person to receive child benefit, and the other person to receive a hefty tax bill to pay for it at the end of the year. That makes little sense.

If her husband isn’t paying his way, then they need to discuss how bills are split and get him to contribute more than way.

Doing it via claiming child benefit in this way is very bizarre IMO.