Child benefit without me knowing

sammyjammy

How do your finances work as a couple ?  Does she have a job?  I would suggest reducing the amount you contribute to the pot (if it works that way) by the child benefit amount and explain why.

Woodstok2000

sammyjammy said:

How do your finances work as a couple ?  Does she have a job?  I would suggest reducing the amount you contribute to the pot (if it works that way) by the child benefit amount and explain why.

Exactly this. A friend was in a similar situation, and it was only when she showed her husband how her contribution to the joint account would reduce, and his would need to increase, that he understood this was a neutral impact. She actually noted that because of the significant back dated claim she would need an accountant and so they'd incur major additional costs too. That was probably overkill, but it made the point!

kimwp

Happypotter1 said:

I have explained and even showed what can happen to no prevail.  My biggest concern is (probably sounding selfish) I have to make the repayments weather it be paid up front or monthly installments, either way it would either wipe out savings or really put strain on the monthly budget. This seems to have stemmed from a friends advice who have said they have been claiming it for many years with no issues. The difference in the situations are they are self employed, likely paying themselves low salary and well within the salary claims limits. 

Put the money aside each month. It shouldn't affect budgeting because it has a net zero effect.

p00hsticks

It is also worth noting for the future that there is an option to simply claim the benefit but opt out of the payment and jsut get the NI credit - it will help boost your wife's State Pension (assuming she does not work) and mean your children are on HMRC's radar to get allocated NI numbers when the time comes if they don;t have them already. 

p00hsticks

p00hsticks said:

It is also worth noting for the future that there is an option to simply claim the benefit but opt out of the payment and jsut get the NI credit - it will help boost your wife's State Pension (assuming she does not work) and mean your children are on HMRC's radar to get allocated NI numbers when the time comes if they don;t have them already. 

Although I've just realised as you mention teenagers that there will be no associated NI credits - they stop when the youngest turns 12.
If the only reason you have never claimed the benefit is because you knew you would have to pay it all back, I think HMRC are introducing a way of retrospectively claiming the NI credits that werel missed as a result, but I don't know the details. 

Happypotter1

Thanks for the feedback guys, just to answer a few questions asked.

My wage is the only income into the home, this means all bills are paid at the start of the month, 30% of the income is transferred to my partners account solely for living costs food/clothes etc, no bills from that.
The remainder is used saved for various things and I personally am left with about 15% of this income for myself.

I understand the benefit to receiving the NI contributions. 

As someone suggested, reduce the amount given to her by the amount she is claiming. I said that would be the case but she took it as an insult however it's the only way it can work. 

Unfortunately I think she thout it was a quick way of having some extra free cash available and has went about it completely the wrong way

kimwp

Happypotter1 said:

Thanks for the feedback guys, just to answer a few questions asked.

My wage is the only income into the home, this means all bills are paid at the start of the month, 30% of the income is transferred to my partners account solely for living costs food/clothes etc, no bills from that.
The remainder is used saved for various things and I personally am left with about 15% of this income for myself.

I understand the benefit to receiving the NI contributions. 

As someone suggested, reduce the amount given to her by the amount she is claiming. I said that would be the case but she took it as an insult however it's the only way it can work. 

Unfortunately I think she thout it was a quick way of having some extra free cash available and has went about it completely the wrong way

Curious- how much of that 30% is used for the kid and family spend (food)?

Happypotter1

All of the 30%. I also get some shops as well from my own left over amount 

Happypotter1

Bills = 40%
Partner and kids = 30%
Save(holiday/rainy day fund) = 15%
Myself = 15% 

kimwp

So she doesn't have any for herself?