Opting out of child benefit

catherine2304

Hi,
I'm so confused about this - do I actually need to do anything, or if I've gone over the threshold will it just be deducted back from me in tax? I'm trying to figure out on the website how to opt out and have got as far as creating a personal tax account, that was an uphill struggle, but really can't figure out what to do next!
Any help welcome.

Darksparkle

You can opt out or carry on and repay later.

What's best really depends on when you've went over the limit, how far over you are etc.

TELLIT01

Darksparkle wrote: »

You can opt out or carry on and repay later.

From what I'd read about this I got the impression that if it was paid when there was no entitlement interest would be charged on the overpayment along possibly with a fine.

Darksparkle

TELLIT01 wrote: »

From what I'd read about this I got the impression that if it was paid when there was no entitlement interest would be charged on the overpayment along possibly with a fine.

Only if you don't complete your self assessment on time or pay the tax charge late. If you complete your self assessment correctly, on time and pay on time there would be no interest and no penalty, why would there be if you've then done nothing wrong?

sheramber

https://www.gov.uk/child-benefit-tax-charge/pay-the-charge

Register for Self Assessment

You need to fill in a Self Assessment tax return each tax year and pay what you owe.

If you don!!!8217;t usually send a tax return, you need to register by 5 October following the tax year you need to pay the tax charge.

You!!!8217;ll get a letter telling you what to do next after you!!!8217;ve registered.

Register now

If you register in the year you need to pay then there will be interest unless you do not pay your self assessment by the due date.

If you register late then there may be late filing penalties.

To opt out You can contact the Child Benefit Office by phone or post

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/child-benefit

catherine2304

Thanks all, I was previously self employed so do an annual self assessment so I'll do that for the 17/18 tax year.
I'd rather opt out and not have to do a future self assessment for the 18/19 tax year, does anyone have a link as to how you opt out?!

Darksparkle

I'd just call them as per sheramber's link.

p00hsticks

Darksparkle wrote: »

What's best really depends on when you've went over the limit, how far over you are etc.

Another consideration is if there is a stay at home partner who could potentially benefit from the NI credits that come with CB (until the youngest child reaches 12) as this could boost their future state pension amount.

Mojisola

p00hsticks wrote: »

Another consideration is if there is a stay at home partner who could potentially benefit from the NI credits that come with CB (until the youngest child reaches 12) as this could boost their future state pension amount.

The stay at home parent can still claim the NI credits even if CB isn't being paid.

LilElvis

Mojisola wrote: »

The stay at home parent can still claim the NI credits even if CB isn't being paid.

Or continue to claim a tax free loan and pay it back the following year.

LilElvis

catherine2304 wrote: »

Hi,
I'm so confused about this - do I actually need to do anything, or if I've gone over the threshold will it just be deducted back from me in tax? I'm trying to figure out on the website how to opt out and have got as far as creating a personal tax account, that was an uphill struggle, but really can't figure out what to do next!
Any help welcome.

If you have earned over £50k (including taxable benefits) in the 2017/2018 tax year then you need to register for self assessment and complete a tax return by 31 January next year and pay any monies due. If you earned over £50k earlier than the current tax year, and didn't complete a self assessment, then you are going to be liable for penalties in addition to the repayment of overpaid child benefit.