My husband's due a pay rise at work, after looking online this would take his salary over the 50k limit for claiming child benefit without having to pay so much back. Does anyone know how this actually works?
Also after tax etc his take home pay for the year would be way less then 50 so is this based on take home pay, if it is I won't need to do anything will I?
I’m pretty sure it based on taxable pay, which is gross pay minus tax free allowance (£12,570 for most people).
There is a calculator online which should help calculate whether it would apply to you:
This is a nightmare happened to me and my husband and when you take off tax and the loss of child benefit you might as well be earning under 50k ... so when he got a new job we make sure he never goes over or we run at a loss... makes sense doesn't it
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Also anything over 50k up to 59k you only pay part of it back I think over 60k and you pay back the whole tax years worth and they won't let you know until the next tax year which is helpful
It's also worth nothing that if you are currently a stay at home parent or only working part time and therefore not eligible to pay tax, then make sure you claim it and then pay it back, rather than not claiming it at all. Otherwise you won't get your pension credits.
It's an absolute nightmare because you have to go into self assessment, which if you've only ever been a PAYE employee is a total minefield. We've not had it for years. It's a flawed scheme where you can get a single parent earning £50k and they don't get it (or at least not the full amount) but 2 parents earning £49,999 each and they still get the full amount.
It's also worth nothing that if you are currently a stay at home parent or only working part time and therefore not eligible to pay tax, then make sure you claim it and then pay it back, rather than not claiming it at all. Otherwise you won't get your pension credits.
This is a nightmare happened to me and my husband and when you take off tax and the loss of child benefit you might as well be earning under 50k ... so when he got a new job we make sure he never goes over or we run at a loss... makes sense doesn't it
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Also anything over 50k up to 59k you only pay part of it back I think over 60k and you pay back the whole tax years worth and they won't let you know until the next tax year which is helpful
My other question is about company cars. With his pay rise it would put him in the company car scheme if he wanted it, would that add to his total salary? I read it does which would possibly push him over the 60k limit of being able to cancel the CB but me still keeping my national insurance credits.
They will eventually…happened to my friend! Soon as I went over £49k basic I stopped it so I didn’t have to worry about bonus/overtime tipping me over. I wouldn’t have known if it wasn’t for her tho! Its a joke tho as like someone said 2 x people could be earning £49k each and can claim!
I have a feeling it's one big bill at the end of the tax year but it's been years since I looked into it. It sounds like it might have changed a bit if for 60k you can cancel but still get the credits.
I have a feeling it's one big bill at the end of the tax year but it's been years since I looked into it. It sounds like it might have changed a bit if for 60k you can cancel but still get the credits.