Help needed! Just found out about tax charge on child benefit.

[Banoffeepie29]

Hope this is OK to post. I've been such an idiot! I had some good advice on here recently about taking control more of my finances in an unequal marriage. I created a HMRC account on the app and realised I was only claiming child benefit for 2 children when I have 3! As I've recently learnt it's important for your pension credits to claim, I started a new claim for 3rd child but then read about the high income tax charge! I'm not 100% hiw much he earns, but I'm pretty sure my H earns atleast 60k. Now I am worried I will get in trouble for claiming. I'm not sure when he passed the 60k threshold, or exactly how much he is on.

Does anybody know if I will have to pay the tax charge back now? Does it get back dated? Or will it be H who has to pay it, he will be fuming if that's the case! I feel so stupid because I had no idea about this rule I'm rubbish at things like this anyway. I've got to the part of the claim where I need his NI number but now I'm worried about telling him. Any advice would be greatly appreciated.

The two child cap for benefits never applied to child benefit.

a lot of people missed out over the years due to that misconception.

There has never been a limit on how many children you can claim child benefit for.

You can claim child benefit for how ever many children you have, there's never been a limit

Back dating time limit is very short

There's obviously a much bigger issue here than the child benefit if the husband will blame the wife for not knowing about the higher income charge, it's not knowledge restricted by sex

Up until 2024 the cap was £50k with all paid back at £60K

Now it starts at £60k with a proportion paid back until you reach £80k and then its all paid back.

The higher earner needs to do a self assessment tax return in order to pay back any money that is owed

It’s not your responsibility, it is his. If he earns over the threshold he needs to compete the tax return. You’re entitled to the money, he must just pay it back.

Adding to this, you should always claim,
there is just the option for it not to be paid if they earn over the threshold. My husband and I share finances so I don’t both taking the money, but if I wanted it he would have to add it to his tax return.

Is there any way he could already know and be paying it? Would HMRC know his salary from the info they already gave from the two children I claim for?

Exactly! It’s on him to do a tax return. I accidentally didn’t realise I had gone over the threshold a couple of years ago and got a fine through the post a year or so later. Maybe you will have left him by the time he gets the letter if there is one to come assuming he doesn’t already do a tax return and he is over the threshold. Have you read the Lundy Bancroft book yet?

Does he do an annual tax return? If so he should be declaring it there. He can make some deductions from earnings for pension and charitable donations which might make him below the threshold. You can claim it even if earning above the threshold but repay excess a year or so later(for 2025-6 tax year the tax return is due to be submitted by January 2027).

HMRC will know his salary. Does he already do a self assessment tax return or is he PAYE only?

If his adjusted net income is between £60k and £80k then it's definitely still worth claiming. He will need to check his income for previous years too. It is his responsibility not yours especially if he doesn't share his income details with you.

It's worth reading https://www.gov.uk/child-benefit-tax-charge as adjusted net income is not the same as salary and it explains what to do.

If he asks you not to claim in future and this will leave you short then you need to sit down and assess finances as a couple. It's a good idea to do this regularly anyway.

I’m pretty sure you should claim anyway as it will be beneficial in future for your state pension. It's not your fault he won't tell you how much he's earning. He's financially abusing you by making you pay for the DC and groceries out of your miserly salary.

@sunseasand25 No, I'm not sure who Lucy Bancroft is.

He's not self employed so I don't think he does one.

The threshold is now £60K and it tapers away up until you earn £80K when you lose it all.

@ConBatulations He doesn't agree with shared bank accounts I don't see anything he earns. I do work although due to go on maternity leave soon, but I don't earn a lot, so the child benefit does come in handy for things for the kids and my own like shampoo, clothes, phone etc. He may suggest not claiming it at all, I will have to see.

OP - you are still entitled to claim CB if your partner earns over £60K, he just has to pay some or all of it back through a self assessment form depending on how much he earns. Pension payments and some other deductions can be taken out of salary before his income is considered for CB deductions, so if he earns £65K and pays £5K into his pension each year you could still keep it all.

Just tell him you are claiming and he's above the earnings threshold he'll need to register for self assessment through HMRC if he doesn't already do so.

That’s not true, it’s now a sliding scale between £60-£80k. Has been for a year or two. And you deduct pension contributions from your salary first.

There’s a lot of outdated advice here OP so best to double check exactly how much your husband earns and work it out yourself if you owe any of it back.

He will have to do a self assessment if you are claiming child benefit. You can claim it to get your NI credit, but choose not to actually receive any money if it is going to be a problem. I think you have bigger problems with your inequitable marriage though! If he's so desperate to have finances separate, then it's a him problem, you claim it, he pays it back, it's not your fault her earns over the threshold.

if he gets any benefits in kind on top of a basic paye salary he might do one, many higher rate tax payers are required to.

I'm worried for you OP. This situation sounds a lot like a relationship involving coercive control.

So he doesn't 'know' then...or didn't check....? Odd someone in a high paying job can't manage that.

I claim CB to get my NI credits for my state pension as I've had a few years of not working. DH pays or back through his tax return. It was your H's responsibility to ask if you were claiming it IMO, particularly if you have separate finances. If he has ever asked you or you've ever discussed it then he may already be paying it back.

If you're experiencing financial abuse or any other kind of domestic abuse I would carry on claiming and not say anything for the moment and take some time to think about your options. You say the money comes in handy as if your H wouldn't give you more if it was needed, which feels concerning to me. Remember you don't owe any money back, it's him who hasn't paid enough tax (or may not have).

Didn’t know that, thanks

Just to add. Even if your DH has to pay it all back. It's still worth claiming as it will cover you NI contributions until your youngest child reaches 12. This doesn't include the financial aspect that can be paid until 16 if below the threshold.

HMRC will likely contact you DH regarding the threshold as his details would have been provided with your first two DC. Any back payments are solely his responsibility, so you don't need to worry.

He can actually pay anything owed back via PAYE now or through a tax return. They have made this much more simple than it was in previous years when they also changed the thresholds.

Don't worry, you don't have to involve yourself in paying anything back. Just get that claim in for your 3rd DC and you need it for the NI contributions for your state pension. Especially as your re a very low earner.

I would also recommend contacting the DWP for a pension forecast as they will tell you how many NI Credits you have and give you advice on what you can do to boost this for retirement. Good luck OP.

Thanks for this, but I do worry about the fact he might have to pay it back. I'm hoping by some miracle he already knows and either is doing, or doesn't need too. However, I still think I'm going to have to mention it to him.