Child Benefit

CyberCatK

Hi.
I currently claim Child Benefit.  Single mum, two kids.
I earn over £50k so have to pay some back via my self-assessment (fine).

However, their dad (living at a different address), doesn't earn £50k - should he claim it instead?
He is living with his new partner, and presume they have a household income of more than £50k if that matters too.

Thanks.

MattMattMattUK

CyberCatK said:

Hi.
I currently claim Child Benefit.  Single mum, two kids.
I earn over £50k so have to pay some back via my self-assessment (fine).

However, their dad (living at a different address), doesn't earn £50k - should he claim it instead?
He is living with his new partner, and presume they have a household income of more than £50k if that matters too.

Thanks.

It does not matter who claims it, the higher earner would have to pay it back. Household income is irrelevant, it is only the higher earner's income. Due to the 40% tax rate and the HICBC it makes the effective rate of taxation around 68% for income between £50k and 60k for those with children, on that basis would it not be worth paying more into your pension to reduce your taxable income to £50k as you will gain significantly in your pension and are unlikely to notice the difference in your take home pay. 

CyberCatK

But if I don't claim it (and he does), do I need to declare it on my self-assessment, as he'd be getting the payment, not me?  Thanks.
(He lives elsewhere now)

MattMattMattUK

CyberCatK said:

But if I don't claim it (and he does), do I need to declare it on my self-assessment, as he'd be getting the payment, not me?  Thanks.
(He lives elsewhere now)

Yes, you would still be liable to repay it, and if you do not declare it then HMRC will force you to pay it back anyway. 

sheramber

Eligibility

Only one person can get Child Benefit for a child.

You normally qualify for Child Benefit if you’re responsible for a child under 16 and you live in the UK.

You’ll usually be responsible for a child if either:

• you live with them
• you’re paying at least the same amount as Child Benefit (or the equivalent in kind) towards looking after them - for example on food, clothes or pocket money

Does he meet the eligibility?  https://www.gov.uk/child-benefit/eligibility

CyberCatK

So, yes, he qualifies too.  He pays maintenance to me.

sheramber

chttps://www.gov.uk/child-benefit/make-a-change-to-your-claim

As you are no lnger a couple, once you are no longer claiming then you would not have any amounts to declare on a self assessment return.

You can opt  out of receiving payment but still have the claim in your name.  Nobody would receive the child benefit in that case

You can pay into  a pension to reduce your net adjusted income below £50k.  Note it is your net adjusted income that is relevant , not  your earnings

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

CyberCatK

Sorry, but I think I'm getting conflicting advice!
If I stop claiming, and he starts...
I have nothing to declare.
He would declare it, but doesn't earn 50k so can keep it?
Thanks.

Dazed_and_C0nfused

CyberCatK said:

Sorry, but I think I'm getting conflicting advice!
If I stop claiming, and he starts...
I have nothing to declare.
He would declare it, but doesn't earn 50k so can keep it?
Thanks.

You might find this a useful read, from a usually very reliable source.

https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/child-benefit/high-income-child-benefit-charge-issues-separation#toc-what-counts-as-a-partner-for-hicbc-purposes-

MattMattMattUK

CyberCatK said:

Sorry, but I think I'm getting conflicting advice!
If I stop claiming, and he starts...
I have nothing to declare.
He would declare it, but doesn't earn 50k so can keep it?
Thanks.

Incorrect, if he started claiming then you would have to pay the child benefit back in proportion to your adjusted income above £50k.

Spoonie_Turtle

MattMattMattUK said:

CyberCatK said:

Sorry, but I think I'm getting conflicting advice!
If I stop claiming, and he starts...
I have nothing to declare.
He would declare it, but doesn't earn 50k so can keep it?
Thanks.

Incorrect, if he started claiming then you would have to pay the child benefit back in proportion to your adjusted income above £50k.

Did you read the link?  Because that's not what it appears to say.