How much CB will we owe back?

NannyV

Hi, I haven't received a letter yet about the child benefit changes and what we need to do? My partner earns £40,000 gross a year but has been doing over-time for the last couple of years, so the tax year up to April 2013 he earnt £58,000, didn't go over that £40k threshold until about december 2013/January 2013 .... so is it right to just assume we would have lost all child benefit from January 2013 and will need to repay this, when will they contact us?

What happens from the April just gone, if his gross is £40k but he does over-time resulting in him earning about £64,000 by the end of the year ... bit confused about if you suddenly owe back the entires years worth when you hit £64k or if you get up to the £40k'w worth to keep then loose the rest after then? If we estimate he will earn £64k including over-time ....shall we just put aside all the child benefit or opt out?
We claim for 3 children

benefitbaby

Hopefully the link below should make things clearer, HMRC don't actually send you an overpayment letter, what your OH needs to do is complete a self assessment tax return.
http://www.hmrc.gov.uk/childbenefitcharge/

princessdon

Did he pay into a pension? This is deductible.

Did you pay charity conts? Eg my brownies, cubs, the zoo, national trust, English heritage plus other charity donations are removed.

If you need to do a SA then remove childcare vouchers, charity (including entry to anything you gift aided), clubs, sponsorship, none school uniform days etc. you may find you get under the £50k :cool:

If you don't work then claim it for your credits if you don't mind doing a self assessment.

NannyV

He does pay into a pension, about £60 a month so not enough to make much of a difference, I don't think we have done much for charities that we could remember, and our children aren't in any childcare so don't claim anything in that sense ..... I will probably be back to work in a few months but guess its worth doing the self assessment just in case.

Will check out that link and get him onto organising his SA. Bit annoying that his boss still gets his child benefit though as he takes directors dividends!

NannyV

Thanks for the link benefitbaby, looks like we owe £440 for the last tax year

Dazed_and_confused

NannyV wrote: »

He does pay into a pension, about £60 a month so not enough to make much of a difference, I don't think we have done much for charities that we could remember, and our children aren't in any childcare so don't claim anything in that sense ..... I will probably be back to work in a few months but guess its worth doing the self assessment just in case.

Will check out that link and get him onto organising his SA. Bit annoying that his boss still gets his child benefit though as he takes directors dividends!

Don't be annoyed! Dividends are included when calculating income for the Child Benefit charge - maybe your husband could let the boss know? ;-)