Child benefit tax charge

Aylesbury_Duck

I earn over the £60k threshold and my wife earns around £25k p.a. We receive child benefit for two children. I've tried registering to stop the benefit because it's paid to my account but they've come back and said that it's registered to my wife, so she must cancel it. It's given me time to decide whether we're doing the right thing.

I pay tax through PAYE by my employer. Can I elect to repay the child benefit through the tax code or must I go down the self-assessment route? I want to avoid self-assessment because I've heard it's a pain.

HappyMJ

I wouldn't avoid self assessment it can actually save you more money.

Speak to a specialized tax accountant. You earn enough to make it worth it. All you then do is agree with the figures and sign the bit of paper they give you and they will do everything for you. They can find valid ways to reduce your gross income and their fees almost always exceed the refund you get. Pay them by the hour not by the percentage of money you get back. They might cost £100 maybe £200 but it really is well worth it.

I'd pay CB back through tax if it was me. Save it in the meantime.

benefitbaby

My understanding is that yes, you will have to complete self-assessment tax returns - http://www.hmrc.gov.uk/childbenefitcharge/hicbc-helpsheet.pdf

zagfles

Think you have to register for SA, even if you want it collected through your tax code. But SA isn't really a pain if your tax affairs are simple (and if they're not then you'd probably already be in SA anyway).

You might even get some tax back you didn't realise you could claim for, such as gift aid, personal pension conts, business mileage etc.