Child benefit after redundancy pay

James242

I was recently made redundant and received a redundancy payout as well as my 3 months notice is lieu. Total payout was about £18k of which about half was taxable income (notice lieu and untaken holiday)

I started a new job 2 weeks after being made redundant on a salary of £53k

This will take my total taxable income for this year up to around £63k

Presumably this had an impact on my wife's child tax credits?

Do I need to let taxman know?

I'm baffled by the HMRC website and can't see specific notes on this

Any advice welcomed

jonthedog

Late response, but did you ever find out an answer to this? I was looking into how redundancy payments would affect this myself.

In regards to telling HMRC, you do this on your tax return due at the end of January (or depending on the period you are referring to, the one due January 2016!). They will simply take off an amount equivalent to the overpaid child benefit (if any) in additional tax...they will work this out for you.

Your wife can choose to inform the Child Benefit Office she no longer wishes to receive the child benefit earlier than this (and then you wouldn't have to tick the box on your return and pay the additional tax), but as you are a borderline case you would lose some benefit you are due. This is only worth doing if you are clearly over the £60k mark, and even then I've read that it's worth the person receiving the benefit to continue to do so for NI/state pension reasons, etc.