Should I Opt out of child benefit?

nozzaamazon

Hi, I am fortunate (?) enough to earn over 60k and by whatever means can't get the net down quiet below 60k. My question is that should I opt out ot not?

Specifically, with 2 kids I will receive something like £1700 (tax free) per annum direct into my bank account and then will I be taxed £1700 (deducted out of my pay packet before tax). If I don't opt out am I effectivley saving the 40% tax I would normally pay on the £1700?

Hope that makes sense and someone can help confirm if I'm mad/ best to opt out or in?

Icequeen99

nozzaamazon wrote: »

Hi, I am fortunate (?) enough to earn over 60k and by whatever means can't get the net down quiet below 60k. My question is that should I opt out ot not?

Specifically, with 2 kids I will receive something like £1700 (tax free) per annum direct into my bank account and then will I be taxed £1700 (deducted out of my pay packet before tax). If I don't opt out am I effectivley saving the 40% tax I would normally pay on the £1700?

Hope that makes sense and someone can help confirm if I'm mad/ best to opt out or in?

The £1700 is not deducted out of your pay packet before tax. You will fill in a self-assessment form and either pay the amount in a lump sum or you can code it out through your tax code, which essentially means more tax is being taken.

I don't quite understand what you are asking about the 40% tax?

IQ

SandraScarlett

nozzaamazon wrote: »

Hi, I am fortunate (?) enough to earn over 60k and by whatever means can't get the net down quiet below 60k. My question is that should I opt out ot not?

Specifically, with 2 kids I will receive something like £1700 (tax free) per annum direct into my bank account and then will I be taxed £1700 (deducted out of my pay packet before tax). If I don't opt out am I effectivley saving the 40% tax I would normally pay on the £1700?

Hope that makes sense and someone can help confirm if I'm mad/ best to opt out or in?

If you earn £60K plus per annum, and it is widely known that if your earnings are between £50K and £60K you will lose some of the CB and that above £60K you will lose the lot, you will not be better off by accepting it and then paying it back!

I'm sorry but I don't understand what you mean by "effectively saving the 40% tax I would normally pay on the £1700". If you owed me £1700 (I wish!), then you'd have to earn £2833, in order to clear £1700.

But if £1700 is paid into your bank due to CB, and it then transpires that you shouldn't have got it, because you earned more than £60K, you'll have to repay £1700.

I don't know what job you do, and how secure it is. If it's possible that you could be made redundant in, say, October, and didn't get another job for 2 months, then your earnings would be less than £50K.

xx