Tax free childcare and child benefit

twinkletoes19

First post - just looking for help to make sure I’m understanding the various rules in place for child benefit and tax free childcare please

I am the main earner for the household, husband is self employed and 2 young kids not yet at school so I pay private childcare fees currently 

I was using tax free childcare scheme until husbands income dropped below threshold so now no longer eligible 

I wasn’t claiming child benefit as over the previous limit, just had a small salary increase confirmed which takes me to approx 71k so still doesn’t seem like it’s worthwhile claiming as will then need to pay most back via self assessment 

we can’t use married couples allowance as my salary is above limit for that too. 

I’m a hardworking mum supporting husband and 2 kids - I know I have a decent salary and I’m not complaining as we’re just about managing to make it all work but am I correct in thinking there’s no help whatsoever that I’m eligible for re kids / childcare?

Dazed_and_C0nfused

twinkletoes19 said:

First post - just looking for help to make sure I’m understanding the various rules in place for child benefit and tax free childcare please

I am the main earner for the household, husband is self employed and 2 young kids not yet at school so I pay private childcare fees currently 

I was using tax free childcare scheme until husbands income dropped below threshold so now no longer eligible 

I wasn’t claiming child benefit as over the previous limit, just had a small salary increase confirmed which takes me to approx 71k so still doesn’t seem like it’s worthwhile claiming as will then need to pay most back via self assessment 

we can’t use married couples allowance as my salary is above limit for that too. 

I’m a hardworking mum supporting husband and 2 kids - I know I have a decent salary and I’m not complaining as we’re just about managing to make it all work but am I correct in thinking there’s no help whatsoever that I’m eligible for re kids / childcare?

I don't understand that comment at all.

You make no mention of any other taxable income so if £71k is your salary your adjusted net income may well be lower due to pension contributions.

But even if not you would only need to pay back 55% of the Child Benefit.

Surely 45% of something is better than nothing?

And there is no income limit for Married Couple's Allowance.  But one of you had to have been born in 1935 or earlier.  Which I suspect rules you out with two kids 😉.

Similarly there is no income limit with Marriage Allowance.  You only become ineligible if you are liable to higher rate tax.  Which you may be but with decent pension contributions you may well not be.

Newbie_John

Not sure if you up to date, but things changed little bit since April this year.

1) Child benefit, as you're the highest earner £70k you can get about 50% of child benefit. Still potentially about£1000 a year for 2 kids.
2) Depending on the age of your kids you can get free(ISH) childcare hours - 15h for 2+, and 30h for 3+, from September I think this will expand to younger kids as well.
3) Child tax account - your partners salary needs to drop below £9k a year (£2k-ish every 3 months) to be no longer eligible.

I'm not really sure of your exact details, but based on our own circumstances - our nursery for full time is £20k a year for a child, if we had two about £40k and my salary dropped below £9k - I would happily stay home and look after kids until they go to school.

Saying that, I don't think there is anymore help available as you are being considered as a very high earner.

Maybe consider saving money elsewhere? Remortgage? Stop pension contribution for short period of time? (Sorry, these are just the things I would do myself, if they're not helpful please ignore).

sheramber

Newbie_John said:

Not sure if you up to date, but things changed little bit since April this year.

1) Child benefit, as you're the highest earner £70k you can get about 50% of child benefit. Still potentially about£1000 a year for 2 kids.
2) Depending on the age of your kids you can get free(ISH) childcare hours - 15h for 2+, and 30h for 3+, from September I think this will expand to younger kids as well.
3) Child tax account - your partners salary needs to drop below £9k a year (£2k-ish every 3 months) to be no longer eligible.

I'm not really sure of your exact details, but based on our own circumstances - our nursery for full time is £20k a year for a child, if we had two about £40k and my salary dropped below £9k - I would happily stay home and look after kids until they go to school.

Saying that, I don't think there is anymore help available as you are being considered as a very high earner.

Maybe consider saving money elsewhere? Remortgage? Stop pension contribution for short period of time? (Sorry, these are just the things I would do myself, if they're not helpful please ignore).

the OP  was using taz free child care so seems to know the income threshhold.

I was using tax free childcare scheme until husbands income dropped below threshold so now no longer eligible