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Child benefit tax advice for higher earner
Sprout0808
Posts: 18 Forumite
I now earn over £50k made up of salary, car allowance and annual bonuses. My wife receives child benefit payments as we have 2 children. It works out at around £145 a month.
I had a letter to say that now I earn over 50k I need to do a self assessment and will be taxed on child benefit payments. Whist this is frustrating I understand but when I got my new tax code it seems , from a discussion with hmrc, that they reduce my personal allowance as I have to pay back most of the benefit payments.
So I'm trying to work out if it's actually worth having them. Seems very harsh that because I earn a bit over 50k that we will now be at least £125 worse off each month.
Is this right? Am I best yo take the hit and just stop getting the payments?
Any help appreciated
I had a letter to say that now I earn over 50k I need to do a self assessment and will be taxed on child benefit payments. Whist this is frustrating I understand but when I got my new tax code it seems , from a discussion with hmrc, that they reduce my personal allowance as I have to pay back most of the benefit payments.
So I'm trying to work out if it's actually worth having them. Seems very harsh that because I earn a bit over 50k that we will now be at least £125 worse off each month.
Is this right? Am I best yo take the hit and just stop getting the payments?
Any help appreciated
0
Comments
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Answered on your other thread.0
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Thank you - I wasn't sure how to change the thread so put it twice to make sure 😀Dazed_and_C0nfused said:Answered on your other thread.0
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