Child Benefit - test my tired brain

requirements

This must be new-dad brain, but finding it hard to work out child benefit. I just want to confirm what I understand about child benefit and my situation. Thinking about what happens in this tax year. This is the situation…

Partner currently on mat leave, adjusted net income (pensions etc.) = <£48k likely

My adjusted net income = will be c.£76-78k likely.

First born arrived March 2024.

We claim for child benefit. It makes sense for my wife to claim for it though and received the payment for NI credits, yes? Even though unlikely to be a problem during mat leave (as will be still be paying NI), in the future she may want to take a couple of years out of work if we have more children and as such those NI credits may be useful?

Then to confirm my understanding (if my partner claims)… we will receive the £25.60 a week (paid monthly), but then I will need do a self-assessment tax return for 2024-25 as a higher rate tax payer for the higher rate charge back fee? So it makes sense probably to keep this £25.60 week separate / in a savings account, ready to pay back (most of it) through self-assessment?

p00hsticks

Yes, it makes sense for it to be in your wife's name for her to get to the NI credits. 
I believe there is an option to just claim the credits and not the money if that makes things easier...

Dazed_and_C0nfused

requirements said:

This must be new-dad brain, but finding it hard to work out child benefit. I just want to confirm what I understand about child benefit and my situation. Thinking about what happens in this tax year. This is the situation…

Partner currently on mat leave, adjusted net income (pensions etc.) = <£48k likely

My adjusted net income = will be c.£76-78k likely.

First born arrived March 2024.

We claim for child benefit. It makes sense for my wife to claim for it though and received the payment for NI credits, yes? Even though unlikely to be a problem during mat leave (as will be still be paying NI), in the future she may want to take a couple of years out of work if we have more children and as such those NI credits may be useful?

Then to confirm my understanding (if my partner claims)… we will receive the £25.60 a week (paid monthly), but then I will need do a self-assessment tax return for 2024-25 as a higher rate tax payer for the higher rate charge back fee? So it makes sense probably to keep this £25.60 week separate / in a savings account, ready to pay back (most of it) through self-assessment?

I don't believe Child Benefit can be paid monthly, 4 weekly is the standard period.

Is your ANI of £76-78k after the maximum pension contributions you are able/willing to pay or is there scope to increase those?

With the HICBC factor and higher rate tax they would be very tax efficient.

sheramber

Your wife can claim child benefit but elect not to receive any payment.

She will get NI credits  but no money, so no need to pay anything back.

Dazed_and_C0nfused

sheramber said:

Your wife can claim child benefit but elect not to receive any payment.

She will get NI credits  but no money, so no need to pay anything back.

True but her expected ANI is less than the new higher threshold so that would be giving away ~10% of the Child Benefit.