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Child Benefit Higher Salary

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Comments

  • The NI credits you get from claiming child benefit are super important to us as I have zero hours contract and seldom get enough hours to pay national insurance.

    I'm in final year of keeping DH income of £57k adjusted income under £50k via extra pension contributions inorder to get future full state pension. Its a calculation I know and always a mad flurry in March once we know what his actual final gross salary will be as we dont get his P11D until then but so worth it.

    Obviously its me who claims the child benefit.

    Complete aside and off topic but its adjusted income that counts for student loan uni applications so my uni child benefits from max loan as a result of our previous tax years doing the calcs and making the extra pension contributions. win win win
    If you want to be rich, never, ever have kids ;)
  • Hi hope you don't mind me jumping in on this, I have also received the letter this week which is absolutely fantastic timing so close to Christmas.
    We are completely unaware that the Higher salary bracket ever existed and have spent the day finding out as many old payslips etc to try and see what we owe.
    Fortunately as far as I can tell it is not a massive amount but what does concern me is my shares. Do I need to include profit from selling shares into the adjusted totals along with any dividend gains ? I hope this hasn't put too much of a dampner on your Christmas celebrations.
    Thanks
    Brett
  • Fortunately as far as I can tell it is not a massive amount but what does concern me is my shares. Do I need to include profit from selling shares into the adjusted totals along with any dividend gains ?

    You are confusing Capital Gains and Income.

    The profit is a capital gain, which has its own tax free limit each year and isn't relevant for the High Income Child Benefit Charge.

    Dividends are taxable income and do need to be included. Note there is no "allowance" for dividends however the first £2,000 (current tax year) would be taxed at 0%. Even when taxed at 0% they still form part of your adjusted net income so you could in theory have £2,000 dividend income on which £0 income tax is due but you would have 20% of your Child Benefit to repay :(
  • Hi DandC and thanks for help,

    Ignore points 3 & 4 , I dont know why I thought having Kids ISA account would allow me to transfer some of my gross income as some sort of contribution in order to stay below £50k threshold.

    Many thanks
    BB
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