Child benefit and threshold income

[Sheldonsheher]

If you claim child benefit but pay it all back through your self assessment tax returns. Is this child benefit counted towards your 200k threshold income?
I always claim it and pay it back, but will this count to my threshold income on paper, trying to keep below the 200k due to defined benefit pension scheme I am not able to calculate my Adjusted income in advance!

thanks

Could you not claim it and opt out of payment instead?

Yes going forward but not this tax year. Can’t remember but I read somewhere that it was better to claim it and pay it back.

I think its only worth taking the money if you get to keep some of it. If it's NI credits related then you still get them if claiming and opting out of getting the money.

Only if your husband/wife isn't paying enough NICs to get a full pension. We did this when I was studying for a degree/PGCE/PhD - wife earned over the threshold but I still claimed CB as that paid my NICs for 8 years, otherwise I'd have a massive gap come retirement.

@amigafan2003 you still get the NI credits if you claim and opt out of payment.

I’m single parent so no real point in my claiming I guess, I think it was something to do with children’s NI number.

They get the NI number from making the claim. You don't need to get the money to get the NI number.

What about the question does anyone know if it counts to your threshold income. ?

If I register but don’t take the money.
I presume their absent estranged DF could claim the money? With me paying it back?

No it dosent work like that. You would be registered as the claimant for the child so someone else can't also claim for them even if you don't take the money.

You would still be the claimant but just not getting the payment. How would he know you weren't getting the money unless you told him?

Yes that was just a small thought about df. As you say doesn’t sound like it is an issue.

Still unsure on my original question though. Does child benefit count towards your threshold income?

No - only taxable income counts (this is why things like salary sacrifice and pension contributions also don't count)..

I'd never heard of the '£200k threshold income' so had to Google and came up with:

https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance

Gov.uk also lists CB as non taxable:

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits#:~:text=The%20most%20common%20state%20benefits,ll%20have%20to%20pay%20tax)

But seeing as you're asking quite technical questions about minimising tax on a £200k+ income, it's probably best to put these to an appropriate professional who has a full picture of your circumstances.

The point about claiming and paying back is only relevant if both parents live together and one isn't earning enough of their own income to pay NI towards a state pension.

No it's not added to income at all. It's a one line adjustment on the annual tax calculation, adding to the tax due. It doesn't form part of any calculation of income on which tax is payable.

Thanks it’s to do with the tapered pension allowance 200k threshold income.