Hi


Due to new baby and the reduced hours my wife is working / everything becoming more expensive! I've taken to reviewing our household finances in the hope of avoiding having to do much more overtime.


This prompted a conversation with a friend. Their household income is virtually identical to ours now that my wife is working less, but because they as a couple earn similar amounts, whilst in my household I earn significantly more than my wife, my friend actually ends up with more free cash each month.


That prompted me to read up on HMRC and understand that tax is completely done at an individual level (unless below a certain threshold and then you can transfer some allowance, which we're not). Fine!


So I looked into child benefits for my wife due to her low income. Here I've found we're entitled to claim, but because the household income is over a threshold, they'd take it all back.


My question is whether I'm missing a loophole? or anything I should be considering /anything I can pay solely from my wages e.g. a friend has advised I pay for childcare rather than my wife.


To me, it looks like we as a family are worse off compared to an identical family, just because of the income split.


It also looks like we're worse off because someone decided tax should be done on a personal level but benefits at a household level....for me it should be one rule! I don't want to receive any benefits, but at the same time, I don't want to be penalised.


I do hope I'm missing something.