Tax free childcare and child benefit

stronglass

Recently had my first baby! My plan was for my partner to claim the child benefit as I earn just over £50k so would be subject to the tax charge, however we also plan on using the tax free childcare account when I return to work in Nov and I was going to put that in my name, can I do that or do both need to be in the same parent’s name? (In reality, both will be paid to and from our joint account). 

Dazed_and_C0nfused

stronglass said:

Recently had my first baby! My plan was for my partner to claim the child benefit as I earn just over £50k so would be subject to the tax charge, however we also plan on using the tax free childcare account when I return to work in Nov and I was going to put that in my name, can I do that or do both need to be in the same parent’s name? (In reality, both will be paid to and from our joint account). 

I don't know the answer to your question sorry but HICBC isn't based on what you earn.

It is adjusted net income which counts and this is often less than what you earn.  Although it could be more.

Also, the lower threshold for HICBC changed in April 2024 from £50,100 to £60,200.

sheramber

The charge  is not based on  who claims child benefit . It is based on the adjusted net income of the higher earner. So it doesn’t matter who claims child benefit if both parties are in employment and  paying or getting credited with NIC payments. 

Icequeen1

stronglass said:

Recently had my first baby! My plan was for my partner to claim the child benefit as I earn just over £50k so would be subject to the tax charge, however we also plan on using the tax free childcare account when I return to work in Nov and I was going to put that in my name, can I do that or do both need to be in the same parent’s name? (In reality, both will be paid to and from our joint account). 

As others have said, you will still be subject to the tax charge if your adjusted net income is over 60,199 - it doesn't matter in a couple who claims the child benefit. . 

Dazed_and_C0nfused

Icequeen1 said:

stronglass said:

Recently had my first baby! My plan was for my partner to claim the child benefit as I earn just over £50k so would be subject to the tax charge, however we also plan on using the tax free childcare account when I return to work in Nov and I was going to put that in my name, can I do that or do both need to be in the same parent’s name? (In reality, both will be paid to and from our joint account). 

As others have said, you will still be subject to the tax charge if your adjusted net income is over 50k - it doesn't matter in a couple who claims the child benefit. . 

It's over £60,199 from the current tax year onwards.

Icequeen1

Dazed_and_C0nfused said:

Icequeen1 said:

stronglass said:

Recently had my first baby! My plan was for my partner to claim the child benefit as I earn just over £50k so would be subject to the tax charge, however we also plan on using the tax free childcare account when I return to work in Nov and I was going to put that in my name, can I do that or do both need to be in the same parent’s name? (In reality, both will be paid to and from our joint account). 

As others have said, you will still be subject to the tax charge if your adjusted net income is over 50k - it doesn't matter in a couple who claims the child benefit. . 

It's over £60,199 from the current tax year onwards.

I mis-read it, thought we were talking about last year. Have amended. I guess the key point is the OP seems to think that its just about who claims the benefit and the charge can be avoided by the other person claiming it,.