Pausing Child Benefit

Hamiltonc

Hello 

How do you pause and resume child benefit?

Looking to pause it prior to recieving my bonus payday until the new financial year commences whilst ensuring my wife still gets the NI credits 

How do we do this?

Does it take weeks?

Thank you 

Dazed_and_C0nfused

Hamiltonc said:

Hello 

How do you pause and resume child benefit?

Looking to pause it prior to recieving my bonus payday until the new financial year commences whilst ensuring my wife still gets the NI credits 

How do we do this?

Does it take weeks?

Thank you 

Why do you want to do this 🤔 

Hamiltonc

Dazed_and_C0nfused said:

Hamiltonc said:

Hello 

How do you pause and resume child benefit?

Looking to pause it prior to recieving my bonus payday until the new financial year commences whilst ensuring my wife still gets the NI credits 

How do we do this?

Does it take weeks?

Thank you 

Why do you want to do this 🤔 

Because when do tax assessment it'll be a lesser child benefit total to declare so less high tax will be paid for self assessment for the high child benefit tax charge 

Dazed_and_C0nfused

Hamiltonc said:

Dazed_and_C0nfused said:

Hamiltonc said:

Hello 

How do you pause and resume child benefit?

Looking to pause it prior to recieving my bonus payday until the new financial year commences whilst ensuring my wife still gets the NI credits 

How do we do this?

Does it take weeks?

Thank you 

Why do you want to do this 🤔 

Because when do tax assessment it'll be a lesser child benefit total to declare so less high tax will be paid for self assessment for the high child benefit tax charge 

But worst case scenario is you pay back the Child Benefit received.  Is it worth the hassle of stopping and starting it again?

Hamiltonc

Dazed_and_C0nfused said:

Hamiltonc said:

Dazed_and_C0nfused said:

Hamiltonc said:

Hello 

How do you pause and resume child benefit?

Looking to pause it prior to recieving my bonus payday until the new financial year commences whilst ensuring my wife still gets the NI credits 

How do we do this?

Does it take weeks?

Thank you 

Why do you want to do this 🤔 

Because when do tax assessment it'll be a lesser child benefit total to declare so less high tax will be paid for self assessment for the high child benefit tax charge 

But worst case scenario is you pay back the Child Benefit received.  Is it worth the hassle of stopping and starting it again?

You pay it as a tax so you pay the tax and tax code is less - it be 3 months worth which is a good couple of hundred 

vacheron

I'm a little confused too.

Even if your bonus income takes you well in excess of the full 100% CB clawback (so you effectively receive zero) you will still only pay an amount of tax that equals the total child benefit, and your wife will still remain entitled to Her NI credits (providing the benefit is paid in her name, or you are transferring them over to her using the double earned NI forms at a later date). 

By stopping her CB, my understanding is that you will have to begin the application process again, and if unsuccessful for whatever reason, her future credits would then cease. 

It seems like a bit of risk with no reward to me?

On-the-coast

@vacheron is correct. 

Unless you’re the kind of family where you keep your money separate, it all comes out in the wash (eventually).  You pay more tax but your wife gets the CB payments.   I always liked to pay the extra tax due directly, but if you let the tax codes sort it out then it may take a year or two - and they may well assume you’ll get that bonus next tax year too. 

sheramber

You do not pay tax on the child benefit, you pay back any amount of the child benefit that has been overpaid.

You pay the same back whether you pay tax at 20%  or 40%. 

You do not pay back any more than you have  received. 

You can Put the money away in a savings account and you will have it available to repay in a lump sum rather than through your code number. 

Hamiltonc

sheramber said:

You do not pay tax on the child benefit, you pay back any amount of the child benefit that has been overpaid.

You pay the same back whether you pay tax at 20%  or 40%. 

You do not pay back any more than you have  received. 

You can Put the money away in a savings account and you will have it available to repay in a lump sum rather than through your code number. 

Ah noted, I'll do that then, thank you