Confused by HI Child Benefot Rules

Hi people

I'm a bit confused by the blurb on the .gov site about the HI Child Benefit rules....


Currently I have an income of 12k and 48k....

Out of the 48k I contribute 240pm in pension contribution (I excluded the employer contribution), 2880 per annum.  Does this then make my incom for CB purpose 45120?

So 45120+12000= 57120pa.

So I think we can come some CB, but if we claim it does it come pro rata'd or do you get it all and have to pay it back by SA only?

Does all that make sense, and have I understood it correctly?




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Comments

  • BoGoF
    BoGoF Posts: 6,793
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    There is no way to pro-rata payment of CB so you will need to register for Self Assessment to pay the relevant amount back
  • gt568
    gt568 Posts: 2,492
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    Ahh, annoying for what will be a few hundred pounds then....
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  • Veteransaver
    Veteransaver Posts: 343
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    To be honest you should consider upping your pension by £7120 a year.
    That £7120 is all at the high rate of 40% so would only cost you net £4272.
    Factor in you'd then get all the child benefit, if you have 2 kids then that is £1915 a year.
    So for a net cost of £2357 (or under £200 a month )you are adding £7120 to you pension.
    That's the whole bonkers thing with the child benefit tax, it's created a ridiculous marginal tax rate between 50-60k


  • gt568
    gt568 Posts: 2,492
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    To be honest you should consider upping your pension by £7120 a year.
    That £7120 is all at the high rate of 40% so would only cost you net £4272.
    Factor in you'd then get all the child benefit, if you have 2 kids then that is £1915 a year.
    So for a net cost of £2357 (or under £200 a month )you are adding £7120 to you pension.
    That's the whole bonkers thing with the child benefit tax, it's created a ridiculous marginal tax rate between 50-60k



    How would I do that?  I already contribute the maximum allowed by the comapny scheme?  Do AVCs come off your taxable income for CB purposes?

    I can't use any of the 12k for a pension as it is already a pension AIUI.
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