Money Moral Dilemma: Should my husband pay back the Child Benefit we're losing due to his pay rise?

Lee131

Difficult one really.  It's an old fashioned view on hmrcs part.
Who's it being paid to (the CA)?
But hmrc want the husband who may (nor the kids) of never seen the money.  
I think the liability for repayment should only be when the claimant earns over 50k. 
I mean how can you expect someone's other half to repay something they have had no benefit from? 

But back to the OP I think you and your husband need to discuss jointly repaying it and a fair amount each which will vary dependant on each others earnings/ disposable income

HannahNP

Have you and your family enjoyed the pay rise your husband has had?

Well, if that's the case, the fact you have separated accounts doesn't mean if you BOTH got in trouble but HE has to pay it back.  

Did you ever think to report the change to child benefit?  If you did and your husband declined then, let him pay his own stubbornness. 

But if you both knew and were hoping not to be caught, just pay it from your join account and move on.  

My husband and I have separate accounts.  We split the house expenses from our own accounts. His money is his ans mine mine.  
If I get in trouble or extra payment BOTH are mine.  
It may not sound OK for some but I love it.  We NEVER have financial arguments. 

HannahNP

blagoslovljena said:

For future years it might be worth your husband increasing his pension contributions through his employer to bring his taxable pay just under the child benefit threshold.

That way you get the best of both worlds - he gets a bigger pension and your family receives full child benefit payments.

Is not that benefits fraud?

Changing real income for benefits purposes?

I believe benefits fraud can be liable for prosecution. 

Also your money and enjoy it. 
Who knows we will be around for ornsion days and someone else comes and enjoys it

Benefits are to support in need. If earnings above threshold need had moved too

quartile

HannahNP said:

blagoslovljena said:

For future years it might be worth your husband increasing his pension contributions through his employer to bring his taxable pay just under the child benefit threshold.

That way you get the best of both worlds - he gets a bigger pension and your family receives full child benefit payments.

Is not that benefits fraud?

Changing real income for benefits purposes?

I believe benefits fraud can be liable for prosecution. 

Also your money and enjoy it. 
Who knows we will be around for ornsion days and someone else comes and enjoys it

Benefits are to support in need. If earnings above threshold need had moved too

No saving in a pension is a legal method of lowering your income,  another is charity donations.
If a local zoo is a charity then you can buy an annual pass, gift aid it and put it on your tax return and get money back if a higher rate tax payer.

AccountantJim

HannahNP said:

blagoslovljena said:

For future years it might be worth your husband increasing his pension contributions through his employer to bring his taxable pay just under the child benefit threshold.

That way you get the best of both worlds - he gets a bigger pension and your family receives full child benefit payments.

Is not that benefits fraud?

Changing real income for benefits purposes?

I believe benefits fraud can be liable for prosecution. 

Also your money and enjoy it. 
Who knows we will be around for ornsion days and someone else comes and enjoys it

Benefits are to support in need. If earnings above threshold need had moved too

It's definitely not benefit fraud. There is no lying or deception involved in making bigger contributions to your workplace pension, and it legitimately reduces your taxable income. The same is true of other salary sacrifice schemes that do not result in a taxable benefit, e.g. cycle to work. 

Bonnypitlad

“What’s yours is mine and what’s mine is my own”?
Should you pay more because you probably use more hot water?

Newbie_John

To lose this benefit, his salary must have gone from £50k or below to £60k and above.
You've gained at least £10k, or £6k after tax - and what you lost is £1k benefit a year.

No idea how you share money - but let's say you pay childcare costs and he pays rent - then yes, I guess he should contribute that £1k.
If you pay 50% of salaries to joint account, then your joint account is still better of by £2k a year even without a benefit, so no, he shouldn't contribute extra in such case.

hill_ekaterina

I think it’s a family bill. But we have a joint account only so there’s not much point to these silly arguments.

LP53

If your husband doesn’t pay more for other things such as holidays or other treats due to been the higher wage earner then he should really offer to pay back the arrears as it’s because of his change you’re no longer eligible. it’s not as if you’re asking him to substitute the child benefit that you’re losing from future payment that you would have received.

clairecymru

In our house, both our wages go into a joint account, which all our bills and household spending comes out of. We then have separate accounts that we both have the same amount of “spending money” that we can do what we like with. We also have a joint regular savings account. I am more of a saver and he is more of a spender, so it saves arguments. 

My husband earns more than me and his pay is likely to go over £50K at the next rise. So we will probably look into raising pension contributions at that point. We also make regular charity donations. Think his work also do give as you earn, so may look into that too.