Child Benefit £50,099

Fennomenon

Hi all, I have tried the online gov.uk calculator and I have just got off the phone to them to double check but I just cannot work out if I am ok with this or not. I think I am very near the threshold where my partners child benefit should stop based upon my income but I am completely unsure about the amounts I am typing in. Would somebody kindly (in extreme layman's terms!) explain to me what figure means what, what deductible amounts mean what and how I actually work it out? I have all my payslips and my recent P60 from a few weeks ago to hand.

Thanks 

Dazed_and_C0nfused

Why do you think it might be a good idea to stop receiving Child Benefit 🤔

HICBC is based on your adjusted net income so unless you have complicated tax affairs you just need 3 distinct things.

1.  Details of all your taxable income.  This includes taxable income which might be taxed at 0% such as (non ISA) interest or dividends.

2.  Details of any Gift Aid contributions

3.  Details of any relief at source (RAS) pension contributions.

Note you can't deduct pension contributions made under the net pay or salary sacrifice methods when calculating your adjusted net income.

r6mile

What is your actual P60 salary? Child benefit does not stop at £50,099, it simply starts to get withdrawn and you will have to repay via self-assessment.

r6mile

What is your actual P60 salary? Child benefit does not stop at £50,099, it simply starts to get withdrawn and you will have to repay via self-assessment.

Fennomenon

r6mile said:

What is your actual P60 salary? Child benefit does not stop at £50,099, it simply starts to get withdrawn and you will have to repay via self-assessment.

The Pay 'in this employment' is £48763.45

r6mile

In this case you should be fine and there should be nothing at all to repay or submit a self-assessment form. Unless you have additional income via self-employment or another job etc.

Fennomenon

Dazed_and_C0nfused said:

Why do you think it might be a good idea to stop receiving Child Benefit 🤔

HICBC is based on your adjusted net income so unless you have complicated tax affairs you just need 3 distinct things.

1.  Details of all your taxable income.  This includes taxable income which might be taxed at 0% such as (non ISA) interest or dividends.

2.  Details of any Gift Aid contributions

3.  Details of any relief at source (RAS) pension contributions.

Note you can't deduct pension contributions made under the net pay or salary sacrifice methods when calculating your adjusted net income.

This is where I get lost... I was under the assumption if one of mine or my partners salary went over £50000 then we wouldn't be able to claim child benefit any more. I am a teacher, I have one income. Only interest on savings is pennies. I don't have anything to do with gift aid and I pay my pension out of my monthly salary through the Teachers Pension Scheme.

Dazed_and_C0nfused

Fennomenon said:

Dazed_and_C0nfused said:

Why do you think it might be a good idea to stop receiving Child Benefit 🤔

HICBC is based on your adjusted net income so unless you have complicated tax affairs you just need 3 distinct things.

1.  Details of all your taxable income.  This includes taxable income which might be taxed at 0% such as (non ISA) interest or dividends.

2.  Details of any Gift Aid contributions

3.  Details of any relief at source (RAS) pension contributions.

Note you can't deduct pension contributions made under the net pay or salary sacrifice methods when calculating your adjusted net income.

This is where I get lost... I was under the assumption if one of mine or my partners salary went over £50000 then we wouldn't be able to claim child benefit any more. I am a teacher, I have one income. Only interest on savings is pennies. I don't have anything to do with gift aid and I pay my pension out of my monthly salary through the Teachers Pension Scheme.

Salary is often irrelevant for tax purposes.

For example TPS is likely to be a net pay scheme so someone with "salary" of £55,000 paying 10% into TPS will have taxable pay of £49,500.

If your P60 shows pay of £48763.45 then that is the staring point for calculating adjusted net income.

You cannot deduct net pay contributions when calculating your adjusted net income as they have already been factored in when arriving at your taxable pay.

Where have you read having income above £50,000 means you cannot claim Child Benefit?

There are no income restrictions whatsoever on claiming Child Benefit.  However some people may need to pay some or all of it back depending on their adjusted net income.

Fennomenon

Dazed_and_C0nfused said:

Fennomenon said:

Dazed_and_C0nfused said:

Why do you think it might be a good idea to stop receiving Child Benefit 🤔

HICBC is based on your adjusted net income so unless you have complicated tax affairs you just need 3 distinct things.

1.  Details of all your taxable income.  This includes taxable income which might be taxed at 0% such as (non ISA) interest or dividends.

2.  Details of any Gift Aid contributions

3.  Details of any relief at source (RAS) pension contributions.

Note you can't deduct pension contributions made under the net pay or salary sacrifice methods when calculating your adjusted net income.

This is where I get lost... I was under the assumption if one of mine or my partners salary went over £50000 then we wouldn't be able to claim child benefit any more. I am a teacher, I have one income. Only interest on savings is pennies. I don't have anything to do with gift aid and I pay my pension out of my monthly salary through the Teachers Pension Scheme.

Salary is often irrelevant for tax purposes.

For example TPS is likely to be a net pay scheme so someone with "salary" of £55,000 paying 10% into TPS will have taxable pay of £49,500.

If your P60 shows pay of £48763.45 then that is the staring point for calculating adjusted net income.

You cannot deduct net pay contributions when calculating your adjusted net income as they have already been factored in when arriving at your taxable pay.

Where have you read having income above £50,000 means you cannot claim Child Benefit?

There are no income restrictions whatsoever on claiming Child Benefit.  However some people may need to pay some or all of it back depending on their adjusted net income.

High Income Child Benefit Charge - I can't post a link as I have not been a member long enough

Unless I've completely misunderstood (very likely)

Dazed_and_C0nfused

Do you mean this article?

https://www.moneysavingexpert.com/family/child-benefit/#taxcharge

r6mile

Assuming you only have 1 job and simple financial affairs as you have described, for child benefit what is relevant is not your ‘salary’ as you might understand, but your in simple terms your salary minus pension contributions ie what’s in your P60. In your case that is below 50k so you don’t need to pay anything back.