Claiming child benefit guide discussion area

Wibble007

I have to repay the full amount, my tax code is altered accordingly but seems like its altered by too much, is there a tax code calculator or something like that? My tax code is 689L and my wife receives £2251.00 child benefit. As my tax code should be 1257L, I would have thought it would be altered to 1032L?

Cobbler_tone

Wibble007 said:

I have to repay the full amount, my tax code is altered accordingly but seems like its altered by too much, is there a tax code calculator or something like that? My tax code is 689L and my wife receives £2251.00 child benefit. As my tax code should be 1257L, I would have thought it would be altered to 1032L?

No, it is the net amount you need to pay back via your tax code. Your assumption is that the tax code is reduced by £2,251, so at 20% you'd be paying back £450. i.e. the extra tax collected between 1257L and 1032L. By my rough calculations at 689L you are paying back around £1,136 of the £2,251. I'm assuming that you are not over the threshold to lose it all. 

Exodi

Is it possible for two married people living together with two children, to each claim for a different child - e.g. Mum claims for one child and Dad claims for the other?

For those curious, this isn't to hope they both get paid at the higher first child rate (I know they wouldn't) but for the same reason that mothers used to be told to generally claim it - to also protect the dad from the potential impact from a gap in employment on their national insurance record. It also has a secondary benefit whereby I believe that in the event of a breakup, even in an equal care arrangement, maintenance may be due to the person who just happened to register for child benefit.

I did some cursory searching and couldn't find anyone really talk about it.

Is there any relevance to the free hour hours or the Tax-Free Childcare scheme?? E.g. does the person that claims child benefit have to be the one that claims for the free hours or tax-free childcare scheme? 

sheramber

You and your partner can claim for different children. If you live together, only one of you can claim at the higher rate, for the eldest child in the household. If you both claim at the higher rate, you may have to pay back some of the money.

https://www.gov.uk/child-benefit/how-to-claim

Tax free childcare  is not linked  to child  benefit.

bluegoldie

LIVING IN WALES I am having trouble trying to figure out entitlement for my 19 year old son. He left college and has started a foundation apprenticeship in wales, in order to do this the Welsh government requires a minimum of 16 hours of employment a week. CB states that you can claim for a person up to the age of 20 undertaking a foundation apprenticeship in wales provided they are not in employment?! I cancelled my CB claim for him after originally declaring that he was entitled, then got a bit panicked and cancelled the claim before his payments were due to recommence. The main reason I ask is that it has a knock on effect with council tax (single working mam no other benefits) and I am asking both the DWP and council the same question and getting nowhere ?! Wondered if anyone here has had similar experience and may help make sense of the clear as mud information on line. 

Thanks 

sheramber

Child Benefit questions

https://www.gov.uk/find-hmrc-contacts/child-benefit-general-enquiries

Dazed_and_C0nfused

Cobbler_tone said:

Wibble007 said:

I have to repay the full amount, my tax code is altered accordingly but seems like its altered by too much, is there a tax code calculator or something like that? My tax code is 689L and my wife receives £2251.00 child benefit. As my tax code should be 1257L, I would have thought it would be altered to 1032L?

No, it is the net amount you need to pay back via your tax code. Your assumption is that the tax code is reduced by £2,251, so at 20% you'd be paying back £450. i.e. the extra tax collected between 1257L and 1032L. By my rough calculations at 689L you are paying back around £1,136 of the £2,251. I'm assuming that you are not over the threshold to lose it all. 

If the op has sufficient adjusted net income to be paying HICBC then chances are they are paying 40% tax on their PAYE income.

So a tax reduction of ~5680 would result in additional tax of £2,272 towards the HICBC.

The full breakdown of the code might show others factors are at play i.e. there might be some tax payable on untaxed interest.