Child Benefit

[KatnissMellark]

Not sure if I'm going to claim or not, but if your salary is normally above the threshold to be entitled but you won't get any Maternity pay, are you entitled to claim?

Thanks in advance!

I was under the impression you're entitled to child benefit no matter what your household income is?

Hopefully someone who has the answer will be along soon xx

Yes, make sure you claim.

Because child benefit has two parts, one is the national insurance credit which is useful in covering any gaps in contributions should you decide later to leave paid work for a while.

You can opt to forego the cash element, or claim it and if you exceed threshold have it clawed back. No extra admin if you already do a tax return, useful if income hovers around the threshold as you have the money coming regularly and do not have to start/stop claims depending on how that year has worked out.

If one person in your household earns more than £60k of taxable income in the tax year then no, you're not entitled. It's on a sliding scale from £50k to £60k i.e. you can claim but not get the full amount.
Whatever the case you should register to receive it once your child is born as it's important for NI purposes I think, then you can opt out. We opted out in this last year as DHs salary took us over but we are entitled in the next year. If one of you earn over £50k and you receive it in full you need to complete a self assessment tax return and that'll tell you how much you need to repay

DH earns just under £50K and I earn just over £60K but am only entitled to maternity allowance, nothing else so will effectively earn very little this year and probably nothing in tax year 17/18.

I know I need to claim for the NIC credit but was wondering if due to my drop in income we'll actually be paid anything. I feel a bit uncomfortable claiming anyway as we are comfortable and don't really need it so perhaps I can do the claim but opt out of payments?

I'm not sure whether you opt out of the payment or essentially have to pay it back with the tax return but essential to put the claim in for the NIC as others have said.

I need to find out as DH income way over the threshold anyway. We both do tax returns but because it's reliant on his complex finances, we'll be just adding mine onto the accountants to make sure we get it right.

Ahh, Gov.uk says can choose to opt out of payments or pay back with tax but should do the claim for the NICs

Whether or not your eligible is based on your actual earnings in that tax year. So in your situation, you can claim it if you will earn under £60k in that year, which is what I understand from your posts. If things change (e.g you go back to work early and earn more than expected, DH gets a pay rise and ends up over the threshold) you just complete a tax return and it will be clawed back that way so nothing to lose.

(I'm in the same situation, having started a new job at 6 months pregnant so only entitled to mat. allowance, bringing my earnings for the year down to the point that I'm still entitled to CB).

I would claim it to keep your national insurance credits. The higher income earner then does a self assessment tax return and pays back some or all of the child benefit depending how much over the threshold they are paid. A proportion is paid back between fifty and sixty thousand and it is all paid back once you go over sixty thousand.

It is based on only the high income earner so they wouldn't take into account your dh's wages.

I'm a tad confused about this

Df is self employed and does property maintenance is kent shameless plug for business 😉

Working out all that went in his account including materials for jobs paid by customers was about £50k. But after deducting materials /exspenses etc he earnt a lot less

So will we be able to claim as gross money was £50k but actual income is a lot less and he it's would be in more like £20/30k

Told him this financial year that he gets customers to pay direct to firm or give him cash /cheque made out to suppliers to pay for the Materials

Of course you can claim as anyone can claim. Between £50- £60k some money would be paid back and once it's over £60k it would all be paid back

Claim. When you get to the point that one or other of you earns over 50k in any tax year (remember this is taxable income, so pension, childcare vouchers, and certain other none taxable benifit don't count) you will have to pay it back via self assessment.

PS do you mean maternity pay in your post??? You should get SMP whatever your salary.

Isn't it also true that if you reduce your salary due to salary sacrifice so you are under the thresholds you still receive it? So if you pay childcare vouchers and pension for example?

Inthedessert no, I mean allowance. SMP is payable on condition of length of employment with current employer. SMA (which is largely the same, but without the 6 weeks at 90% up front) is paid by the government if you've been working long enough to qualify, but not long enough at your current employer for them to pay you SMP

Sorry if that wasn't clear, so I won't get SMP, but I will get SMA

That makes sense. I read it as "because I've got a well paid job, I won't get any maternity pay (allowance)", hence my confusion! Congrats on your new job!

It's done on tax years. If you have less than 50k taxable income (and SMS is mainly discounted) in the tax year, you get child benifit. If you get 50-60k, some CB needs repaying, more than 60k, and it is all claimed back during self assessment.

Yes, sorry, I realised it wasn't very clear when I read it back to myself

@blondeshavemorefun - your DH's income would be the net profit he declares, not his turnover, so if the net profit is under £50K that is what matters. Once the figures go on the tax return, if he did owe anything, it would clearly show on the tax calculation, assuming that you have an accountant.

OP. If you income in the year to 5.4.16 is going to be below £50K you will get CB, if it falls between £50-$60K then you will have to repay some of it. If your income in the year to 5.4.17 is well below £50K then you won't have to repay any of it. It will all be done on your tax return.

But a PP is correct in that even if you don't want to claim it, you need to protect your pension rights and therefore claim but choose not to receive it.

It sounds to me though that you will be safe to claim it.

If a single salary is over 60k it's not worth claiming unless you are prepared to pay it back! If you're joint income is over 90k same applies. We applied to cover my NIC but opted out of receiving the money as didn't see the point knowing we would have to pay it all back at the end of the tax year.
Pointless exercise to claim and then pay back if you ask me!

Like you, we don't need the extra money but it would have been nice to receive it as we would have put it into a savings account for when he is older.

Christmasbaby do you have a link to any info on the joint income of over £90k bit? As that's not my understanding of it (our household income is above £90k and we are eligible). As PPs have said, it tapers off after £50k and stops completely at £60k but that's your earnings after pension, childcare, charity contributions, etc, etc

It is based on a single high earner so 2x £45k earners would not pay anything back whereas a sole person earning over £50k would pay some back and then have to pay all of it back if earning over £60k (which is where a bit of unfairness creeps in)

pink thank you for that. So for self employed people it's the net profit not gross turnover

Yes, because your turnover is before wages, materials etc. The net profit is your income for the year.

It was the advice given on the documentation in the application pack soundsystem

Thanks.