Salary just gone above 50k should I cancel my child benefits?

jamest88

I know once you go above 50k the benefit changes but in this tax year I have not hit 50 yet. Will I be ok to carry on the child benefit until I get to 50k on my payslip or should I cancel straight away? Or is it best to carry on. I really can’t be bothered doing self assessment.

Thanks in advance. Hopefully this specific question has not already been asked. Apologies if so.

Dazed_and_C0nfused

jamest88 said:

I know once you go above 50k the benefit changes but in this tax year I have not hit 50 yet. Will I be ok to carry on the child benefit until I get to 50k on my payslip or should I cancel straight away? Or is it best to carry on. I really can’t be bothered doing self assessment.

Thanks in advance. Hopefully this specific question has not already been asked. Apologies if so.

You only have to pay back all Child Benefit if your adjusted net income (ANI) hits £60k.

For lots of people ANI is less than their taxable income because of pension contributions.

What do you think your next P60 will show your taxable income as?

Do you have any other taxable income?

Alice_Holt

jamest88 said:

I know once you go above 50k the benefit changes but in this tax year I have not hit 50 yet. Will I be ok to carry on the child benefit until I get to 50k on my payslip or should I cancel straight away? Or is it best to carry on. I really can’t be bothered doing self assessment.

     No,  £50k (of adjusted net income) doesn't end CB - only reduces it.

      Importantly, if your partner is getting the associated NI credits, stopping CB may cause a State Pension shortfall for her. 

    I'd strongly suggest you do some research and consider it further (armed with greater knowledge) to prevent any ill-advised actions.
    https://www.gov.uk/child-benefit-tax-charge   - as a starting point.

sheramber

Alice_Holt said:

jamest88 said:

I know once you go above 50k the benefit changes but in this tax year I have not hit 50 yet. Will I be ok to carry on the child benefit until I get to 50k on my payslip or should I cancel straight away? Or is it best to carry on. I really can’t be bothered doing self assessment.

     No,  £50k (of adjusted net income) doesn't end CB - only reduces it.

      Importantly, if your partner is getting the associated NI credits, stopping CB may cause a State Pension shortfall for her. 

    I'd strongly suggest you do some research and consider it further (armed with greater knowledge) to prevent any ill-advised actions.
    https://www.gov.uk/child-benefit-tax-charge   - as a starting point.

You can opt out of the payment but still continue to claim which safeguards the NI Credits until the child is aged 12.

Spoonie_Turtle

sheramber said:

Alice_Holt said:

jamest88 said:

I know once you go above 50k the benefit changes but in this tax year I have not hit 50 yet. Will I be ok to carry on the child benefit until I get to 50k on my payslip or should I cancel straight away? Or is it best to carry on. I really can’t be bothered doing self assessment.

     No,  £50k (of adjusted net income) doesn't end CB - only reduces it.

      Importantly, if your partner is getting the associated NI credits, stopping CB may cause a State Pension shortfall for her. 

    I'd strongly suggest you do some research and consider it further (armed with greater knowledge) to prevent any ill-advised actions.
    https://www.gov.uk/child-benefit-tax-charge   - as a starting point.

You can opt out of the payment but still continue to claim which safeguards the NI Credits until the child is aged 12.

But that may not be a good idea, giving up potentially £1,000 or more (or much more if they have more than 1 child) just for the sake of not doing a self-assessment.

jamest88

thank you, looks like im doing the self assessment then. Its annoying because they have raised it to 60k now but think I still have to do self assessment