Child Benefit thought you got it regardless?

toshkininny

I'm so confused. Child Benefit I thought you were given for each child until they are 16 regardless of how much you earn.


Have I got that completely wrong then?

Lorian

https://www.gov.uk/child-benefit/what-youll-get

Maybe the "incomes over 50K" paragraph is important to you.

toshkininny

Thank you, I am getting rather frustrated with all things tax - I just don't get it !!!

xylophone

https://revenuebenefits.org.uk/child-benefit/guidance/how-do-child-benefit-and-guardians-allowance-work/high-income-child-benefit-charge/


Consider increasing pension contributions if affected.

https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

Dazed_and_confused

You can get it irrespective of income.

But if the "adjusted net income" of one of the household goes over £50,099 then some of it will have to be repaid, bit like a tax but called the High Income Child Benefit Charge.

Once "adjusted net income" gets to £60,000 then it all has to be repaid.

Some people prefer not to be paid the Child Benefit in the first place and can avoid completing a tax return.

Others prefer to receive it even though they fully expect to have to pay it all back.

It can sometimes work like a long interest free loan, particularly where just one or two children are involved.

Receive the Child Benefit throughout a given tax year, say 2018:19.

Get tax return to complete in April 2019.

Send HMRC the completed return by 30 December 2019 and make sure the option to have any tax due collected through your tax code is applicable.

The child benefit charge will then be paid back through your tax code from 6 April 2020 to 5 April 2021, nearly 3 years after the first payment for 2018:19 was received.

Won't work for everyone, there are limits to what debt can be included in a tax code and you have to have a PAYE job but it works for some.

TELLIT01

The people who have had real problems are those who exceed the limit for full entitlement but don't inform HMRC. They end up with a fine on top of having to repay. Don't get caught in that one.