paying some off self assessment to get it below £3000

selinaw001

Next January we shall have a self assessment bill of £3200 (child benefit) had been hoping it could go on my husbands paye in April 2017, but am aware that because its over £3000 this isn't possible, my question is if we pay the £200 to get it under £3000 will be still be able to do this or are we going to have to prepare ourselves to pay it in one go?
TIA

Spidernick

If you can get your husband's tax code changed now to include the child benefit claw back, then he should have two or three months partial payment to bring the total down below £3K.

Pension contributions before 5 April would also make sense, if there is scope there.

Is your husband's taxable income over £60K, or do you only have a partial claw back? If the latter then there may not be a full £3,200 due. If the former, you might want to consider stopping claiming the child benefit, unless this was a one-off higher taxable pay than usual, or if you're happy to get a little cash-flow advantage each year and are happy to pay the whole amount back.

selinaw001

Many thanks for your reply, how would we go about getting my husbands tax code changed for the remainder of this year? If we cant do this is there any other of paying the £200 to bring it back down under the £3000? Unfortunately he hasn't been paying into a pension so not possible to use that .

Linton

selinaw001 wrote: »

Many thanks for your reply, how would we go about getting my husbands tax code changed for the remainder of this year? If we cant do this is there any other of paying the £200 to bring it back down under the £3000? Unfortunately he hasn't been paying into a pension so not possible to use that .

Phone HMRC. If you can get through I have always found them helpful and are able to action changes to tax codes immediately - no need to fill in forms or any other hassle.

Two further longer term recommendations...

1) Pay into pensions especially if the employer will contribute
2) Build up an emergency savings pot so you can handle these sort of events without worry and hassle.

saucer

selinaw001 wrote: »

Many thanks for your reply, how would we go about getting my husbands tax code changed for the remainder of this year? If we cant do this is there any other of paying the £200 to bring it back down under the £3000? Unfortunately he hasn't been paying into a pension so not possible to use that .

My understanding is that you can simply open a SIPP and pay into that. I am planning to do this to increase my clawback...I hope I am right in this regard

sheramber

as the payment is not due until next January you could put a monthly amount away in a bank account so you have the money when payment is due.