Is it worth cancelling child benefit?

dodgie

A recent job change has taken my income above the 60k threshold to qualify for child benefit. Up to now I was under the threshold, the benefit was paid into my wife's account and we have a standing order set up to put this away into an ISA.

I currently already fill out self assessment tax returns. Am I right in my understanding that now I no longer qualify for child benefit, if I don't cancel it I will end up paying it back through tax anyway?

I'm happy for this to happen, as I quite like the fact that we're saving 80-odd quid away a month for our son and it's all just set up so we can forget about it, but am I financially out of pocket by doing this this way? Would I be better off to cancel my child benefit and just save the equivalent amount instead?

Cheers

Rich

[Deleted User]

Your income is over 60k, but do pension payments/nursery vouchers put your income below £60k? It's still worth doing self-assessment then.

If you're certain it's over £60k, there's no point getting child benefits to then just give it back so you might as well not get it to start with

zagfles

You won't be out of pocket, as they won't take back more than you got paid. If you have to do a tax return anyway you may as well keep it, as you'll get the money before you have to pay it back, if your income drops you won't lose out, and if your wife doesn't work it'll get her NI credits (though I believe there's a way of cancelling payments but still getting the NI credits).

xylophone

And have you thought of contributing to your pension? http://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

dodgie

Thanks for all of your replies, I am currently taking childcare vouchers by salary sacrifice and about to start on a company pension so I will have a look and see what my situation looks like after that gets set up.

Cheers

Rich