Child benefit repay as higher earner

[Youse]

I earn £66k and my partner £69k. We've never claimed child benefit but I want to start now and put it in savings for our child.

Does the higher earner have to be the claimant or can I claim it and state his earnings so we pay back the right amount? I have the more secure job so it would make more sense to do it through my PAYE.

From my understanding you need to do a self assessment when one of the parents earns over 50k (at least that was the threshold 6 years ago). So you end up paying back a portion of it in a lump sum at the end of the year. I remember just thinking no thanks it’s too much hassle for the sake of a few quid I’d be left with.

I claim ours, but DH is the higher earner. He has to do a self assessment each year and pay back the correct amount.
Your partner can pay it back through PAYE but I'm not sure of the process as my DH has to do a self assessment for pension contribution reasons so he can't do it through PAYE.

Edited to add - when you claim it, you just claim it, I'm pretty sure you don't state your earnings when you claim it. It is then his responsibility to pay a portion of it back as the higher earner.

I've read that even families who have to pay the whole lot back still claim and put the money in a high interest account then pay back the full amount and then they have the interest to keep.

It doesn't matter who claims but the highest earner does the tax return to repay it. Its most usual for the lower paid/unpaid person to claim and then the higher earner pays it back.

The threshold starts at £60k now and ends at £80k

Gov.uk has a child benefit calculator where you can in put your figures and work out cost/benefit.

Higher earner fills in tax return and pays anything due back .

I've just re read your post. You can't pay through your PAYE if he is the higher earner, it will have to be his PAYE

PP are right that the higher earner needs to repay, it’s on a sliding scale between £60k and £80k. It’s not a difficult tax return to do as you only fill out the bits that are relevant to you. It’’s based on income after deductions so if your partner pays into a pension that might bring you closer to the £60k threshold and you can keep more of it. I’ve not done the PAYE route to claim but assume that is easier still.

Thanks all - I thought PAYE would be easier as you can't forgot or make a mistake (I am pretty good on things like this, partner gets into a pickle and forgets/submits late which is why I was thinking of doing it)

I don't believe it is a choice. It is the legal responsibility of the higher net earner.

From GOV.UK - "If your adjusted net income is over the threshold and so is your partner’s, then whoever has the higher income is responsible for paying the tax charge."

Yes whoever has the highest adjusted net income. If you can you should both contribute to pensions to enable your adjusted net income to reach below 60k. Nothing to pay back then and reduces your marginal tax rate. And pension accruing for your future self win/win.

Is this what you earn after deductions?

It can be claimed by either parent. It is more typical that the lower /non earning parent claims as that way they get their NI contributions until the child is 12 but paid back by highest earning parent as a bit of a financial abuse safeguarding.

There is a new option of paying it back through PAYE, which can be used if the only reason you would be doing a self assessment was for child benefit pay back. I get the child benefit and on the forms you give the NI number of both parents. On years where my partner was close to the threshold he was contacted to do a self assessment form and paid back a small amount. We had one child at the time and he paid ~£100 of the child benefit at the end of the tax return. After they changed the thresholds we didn't have to pay anything back for a year or two but pay rises mean we do again. He now has filled in the form and they adjust his tax code so that it's repaid as he goes. In some ways it's better but he's had to be on the ball a little bit as his tax code changes and not always correctly.

The threshold of £60-80k is based on taxable income so that is your income after pension has been deducted

That's salaries before anything comes out and including bonuses etc.

Thanks for the info, will look into it properly, looks like his PAYE makes more sense.

Either parent can be the claimant. The one with the least secure job would be the most sensible if the youngest DC is under 12 as they would get NI pension contributions if not working.

Assume your DP is self-employed and does self assessment? They just add the amount of CB claimed when they complete the form. There is a calculator for the amount on HMRC website for part years. The tax calculation will work out the amount owed.

Just be careful with adjusted net income. It includes savings interest and bonus etc but does not include pension or gift aid.

It has to be the higher earner because the tax charge is based on their earnings and you wouldn't repay the correct amount if it was calculated on the lower earner's income. If you are both over £80k then in reality wouldn't matter as you would repay it all.

Isnt it done on household income? In whcih case you will be over the 80k and will have to pay it all back (or partner will). Which make sit a right faff to have to do a self assessment for zero money. In which case you are better off claiming it but then stating from the beginning dont pay me it, then you dont have to pay anything back (all of it in your case).

Actually, ignore me, its one of those stupid ones where its based on highest income only isn't it? In which case he will have to do a SA at 69K to get virtually nothing, which will be a annoying.

Can you say only pay me the bit I'm going to be left over with maybe?

It's based on the highest earning individual so both partners can earn up to £80k each before you aren't able to claim anything.

He's actually in a permanent role just in a very rocky sector.

I think at £69k we basically lose half the child benefit as we only have one child this is still enough until our child is 18 to make me think might as well put it in savings for him

It's £108.20 every 4 weeks so just under £60 every 4 weeks if you keep 55%. There is a way to repay via PAYE without self assessment if HICBC is the only reason for you would need to do it.

It's also worth claiming so your child gets a National insurance number issued to them automatically when they are 16.

Can you not specify only pay me the just under £60, like I claim for all mine (for the NI and vaccinations etc) but I say dont pay me any of it?

Otherwise partner will have to do a SA, which is a PITA if you're used to being taxed paye only.

They can't just pay the bit you're entitled to because they don't know what you earn until the end of the tax year because of bonuses, also you might be on sick leave, get a company car or other benefits or lose your job.

On £69k before pension contributions you'll keep most of the money, which will be hundreds of pounds. And if that's the only reason you need to do a tax return, it's a simple job that takes a few minutes.

People with this sort of income often make extra pension contributions for tax reasons so need to do a tax return anyway, so it's just another line in that.

But you can always sign up to repay the excess in the following year's PAYE so it will just take care of itself.

They can't just pay the bit you're entitled to because they don't know what you earn until the end of the tax year because of bonuses, also you might be on sick leave, get a company car or other benefits or lose your job.

On £69k before pension contributions you'll keep most of the money, which will be hundreds of pounds. And if that's the only reason you need to do a tax return, it's a simple job that takes a few minutes.

People with this sort of income often make extra pension contributions for tax reasons so need to do a tax return anyway, so it's just another line in that.

But you can always sign up to repay the excess in the following year's PAYE so it will just take care of itself.