Child Benefit Threshold (Scotland)

weddingringman

Hi,

Sorry if this is a common question but I just can’t seem to make sense of the gov pages on it.

I earned 59k last financial year, and I think that was the first year I went above 50k. Should I be cancelling our child benefit claim as I know I will earn the same again this year?

It seems I should complete a tax form to pay back 95%and continue to do this annually? Is that correct? 

Dazed_and_C0nfused

weddingringman said:

Hi,

Sorry if this is a common question but I just can’t seem to make sense of the gov pages on it.

I earned 59k last financial year, and I think that was the first year I went above 50k. Should I be cancelling our child benefit claim as I know I will earn the same again this year?

It seems I should complete a tax form to pay back 95%and continue to do this annually? Is that correct? 

Cancelling Child Benefit is entirely your choice, there is no income limit which means you have to do that.

Your earnings aren't the whole story when it comes to HICBC.  It's adjusted net income, which includes all taxable income but allows the deduction of RAS pension contributions, that counts.

If your adjusted net income is £50,100 or more you will need to register for Self Assessment and pay some High Income Child Benefit Charge.

A salary of £59k can often be significantly reduced when it comes to adjusted net income.

weddingringman

Dazed_and_C0nfused said:

weddingringman said:

Hi,

Sorry if this is a common question but I just can’t seem to make sense of the gov pages on it.

I earned 59k last financial year, and I think that was the first year I went above 50k. Should I be cancelling our child benefit claim as I know I will earn the same again this year?

It seems I should complete a tax form to pay back 95%and continue to do this annually? Is that correct? 

Cancelling Child Benefit is entirely your choice, there is no income limit which means you have to do that.

Your earnings aren't the whole story when it comes to HICBC.  It's adjusted net income, which includes all taxable income but allows the deduction of RAS pension contributions, that counts.

If your adjusted net income is £50,100 or more you will need to register for Self Assessment and pay some High Income Child Benefit Charge.

A salary of £59k can often be significantly reduced when it comes to adjusted net income.

I have a company car that impacts my tax contributions, and my pension is currently 11% (I think I pay 6%, my company pay 5%).

Does that sound as though I could be below the £50,900? Can I simply call the inland revenue for advice?

Also, on last years pay being £59,000 before tax, is it my responsibility to investigate if I ought to pay some of that child benefit back? Or will my tax be adjusting automatically?

Dazed_and_C0nfused

weddingringman said:

Dazed_and_C0nfused said:

weddingringman said:

Hi,

Sorry if this is a common question but I just can’t seem to make sense of the gov pages on it.

I earned 59k last financial year, and I think that was the first year I went above 50k. Should I be cancelling our child benefit claim as I know I will earn the same again this year?

It seems I should complete a tax form to pay back 95%and continue to do this annually? Is that correct? 

Cancelling Child Benefit is entirely your choice, there is no income limit which means you have to do that.

Your earnings aren't the whole story when it comes to HICBC.  It's adjusted net income, which includes all taxable income but allows the deduction of RAS pension contributions, that counts.

If your adjusted net income is £50,100 or more you will need to register for Self Assessment and pay some High Income Child Benefit Charge.

A salary of £59k can often be significantly reduced when it comes to adjusted net income.

I have a company car that impacts my tax contributions, and my pension is currently 11% (I think I pay 6%, my company pay 5%).

Does that sound as though I could be below the £50,900? Can I simply call the inland revenue for advice?

Also, on last years pay being £59,000 before tax, is it my responsibility to investigate if I ought to pay some of that child benefit back? Or will my tax be adjusting automatically?

You have to include all taxable income.  Earnings (P60 pay figure), company benefits, interest, dividends etc.

HMRC don't give advice, you need to work this out yourself or get professional help.  Although there really is no need for that.

Your starting point is to establish your total taxable income and if your pension contributions can be deducted when calculating your adjusted net income.  Only RAS contribution can be deducted.

Being below £50,900 doesn't avoid HICBC, you would still have to file a return if your adjusted net income was above £50,099.

xylophone

https://www.mandg.com/pru/adviser/en-gb/insights-events/insights-library/reduce-high-income-child-benefit-charge

https://www.gov.uk/child-benefit-tax-calculator

purplecapricorn

Sorry to jump on this thread from 2023 but can someone confirm if the child benefit cap is £50K in Scotland or £60K - the Scottish government page says £50K but then it gives you a link to work out the 'high income child benefit charge' which takes you to the Gov website which says £60K. So confused!

Dazed_and_C0nfused

When it comes to High Income Child Benefit Charge there aren't different rules for Scotland.

And there isn't a cap as such, it's a universal benefit but some people may need to pay some or all of it back as a tax charge.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81883027#Comment_81883027

It does say at the top

Last updated 14 Feb 2019