Child Benefit Rules

Mrs_Soup

Erob83 wrote: »

Hello All

Wondering if anyone has been in the same situation as our family and found any help...

My husband has just entered the higher tax bracket for earnings and as we have four children and my salary was all going on childcare we have opted for me to SAHM with the children for the next couple of years until they are all school age.

We have now been contacted to say that my husband has to do a Self Assessment for tax as we are no lounger eligible for Child Benefit. Just wondered. This is right as we are now a one income family and effectively bringing in less income than when he was under the £50k bracket (our joint income would have been £67k)?

This makes no sense to me.

Thanks for any advice or help:)

Bonkers but true. We have a similar position- joint income about 75K but mostly from one person = no child benefit. Couples on 49K each - total 98K= get child benefit
If your husband has only just tipped over into 50K plus you don;t lose all of it- between 50K and 60K its a sliding scale. If it's 60K plus I would advise not claiming as its less hassle than doing tax returns every year but keep your claim open in your name so you get the NI credits while you are SAHM - just don't get the money. I can't remember how this is done but it is possible.

hieveryone

LilElvis wrote: »

Completing an online return is quick and very easy if the only thing you need to declare is the child benefit. All you need are your P60 (and P11D if issued) and follow the steps - no more than half an hour. Hardly very MSE to "throw away" money by declining the benefit simply because you're too lazy to look at completing a Self Assessment.

I'm not throwing anything away as I don't get any of it - I'd be claiming to pay it all back. Therefore, wasting my own time - so by not claiming it, I am being moneysaving doesn't change the fact it's a completely stupid system.

Erob83

Thank you for all your advice and for clarifying what I had read. Will definitely look into keeping the claim open for national Insurance credits.

Dazed_and_confused

I'm not throwing anything away as I don't get any of it - I'd be claiming to pay it all back. Therefore, wasting my own time - so by not claiming it, I am being moneysaving doesn't change the fact it's a completely stupid system.

That is all a matter of opinion. If your adjusted net income is >£60k them I can understand your view.

But some Moneysavers would take the Child Benefit and save it.

Taking 2018:19 as an example, the first Child Benefit payment of the 2018:19 tax year will usually be in April 2018. The final payment in March 2019 or very early April 2019. At which point you have a years worth of Child Benefit saved in an interest paying account.

File your Self Assessment return before 31 December 2019 and owe less than £3,000 for that tax year and it will normally be possible to have the amount owed included in your 2020:21 tax code. Instead of paying it direct to HMRC on 31 January 2020.

So, typically, from late April 2020 you will pay back one twelfth of the Child Benefit received in 2018:19. And so on each month until the final month of the 2020:21 tax year. So nearly three years after the first payment was received for 2018:19 the final amount due back will be paid and you will be left with the interest earned in your bank account.

Admittedly not a lot of interest at current rates but still a bit of good old fashioned money saving

calcotti

Mrs_Soup wrote: »

...keep your claim open in your name so you get the NI credits while you are SAHM - just don't get the money. I can't remember how this is done but it is possible.

You claim Chid Benefit but tell HMRC you don't want to be paid it. https://www.gov.uk/child-benefit-tax-charge