Newbie to Child Benefit & possible SA. Advice Needed Please

moneybairn

Hi, my Wife and I have recently started claiming Child Benefit in her name. I have concerns about claiming this though as my income may be over the threshold meaning I have to complete a SA and repay some of the Child benefit(which is fine, it just doesn't seem straight forward). I would just be over the limit slightly by a max of 3k.

I have a few questions if anyone with more experience can help me with.

Since we have started claiming during the 15/16 tax year when would I need to complete a SA if necessary? Would this be in the 16/17 tax year when I have received my 15/16 P60?

Since I am the one that will potentially push us over the income bracket, does that mean that is only me that is required to complete a SA and not my wife who is the main name on the child benefit claim?

Do you deduct all pension contributions when working out if you need to complete a SA or not?

Any help or further advice would be greatly appreciated. It seems a lot of hassle claiming this but is probably worth it in long run.

Thanks

moneybairn

Many thanks for your quick response.

What about when the SA is required to be completed. Am i right in thinking because we have just claimed this tax year, i dont actually complete a SA until 16/17 tax year?

Yes I am employed only and may only need to complete SA due to child benefit, I believe the online form is tailored to suit your circumstances? I'm hoping my pension contributions can push me under the 50k mark!

xylophone

http://www.aviva-for-advisers.co.uk/site/public/tech-centre/tech-article-detail/child-benefit-charge-planning
might be worth a look.

sheramber

You would complete a tax return after 6 April 20016 but that return would be for 2015/16. Total inome for 2015/16 won't be known until after 5April 2016.

If your income is over £50,000 you can still claim child benefit but not recieve the money. This would give your wife NI credit if she is not working/paying NI contributions

https://www.gov.uk/child-benefit-tax-charge/your-circumstances-change

moneybairn

Ok, thanks for all your help so far.

That Aviva document was very useful.

So when I am paid, my company take pension deductions through the smart method. I just take the smart reduction, add them up per payslip for the year and then just deuct them from my total earnings and this may help bring my earnings under 50k?