Child Benefit eligibility and High Income Tax Charge

[Dante32]

Ok good thanks.

So really just one more question to double check and alleviate my stress. At the very end of the ch2 form it asks for the name/names of the people on the account in which to pay the funds and I put both my name and that of my wife (subject to immigration control) as it is a joint account. This cannot be conceived as the funds being sent to dual claimants can it? I am the sole claimant even if the account is a joint one. Is this correct?

Please advise and thanks in advance.

[CR001]

It is fine, no issue.

[Petaltop]

Apparently all British Citizens can apply for Child Benefit (presuming they have children) regardless of savings or income.

You do not have to cancel Child Benefit the minute you get a high income job, despite the subsequent impact of going over the 60k GBP threshold at the end of the tax year.

Both are true.

While you were out of work your claim for Child Benefit as a Brit, meant that you received a National Insurance credit that will count towards your state pension. If your income goes over the CB threshold in that tax year, then you need to file an SA so HMRC collects the money.

When high earners have a partner at home that doesn't work (and who is allowed to claim Child Benefit in their own name) it is worth claiming CB in the the non working partners name as they get the National Insurance credit towards their UK state pension. Their high earning partner will then pay the money they received back by filing an SA. Don't be late filing that SA, or else you will get fined.

https://www.gov.uk/child-benefit/overview



Sometimes if you are only just over the CB earnings threshold, you can pay into a pension to reduce your salary and still claim CB. Look into that for this year as you might not have to pay back all of the CB. Ask on here as they will know. http://forums.moneysavingexpert.com/for ... .php?f=139

[Dante32]

Thanks CR001 and thanks also to petaltop.

Interestingly, that was why I did the CB claim in the first place, to protect my state pension contributions. The amount of heartache it has subsequently caused me is an unexpected side effect but I really feel now that making a CB claim whilst out of work (and despite savings) for a British child and then cancelling it 5 months into a new high income position, should not have a negative impact on my wife's FLR (M) as the claim was in my name for the British child, not the spouse under immigration control. The money will be returned in extra tax anyway.

Thanks to all the moderators on this forum. The guidance and support you provide is invaluable and reassuring at the same time. Well done.

[Dante32]

Evening All.

Ok, I have had a long chat with HMRC self assessment and it seems that you can pay them anything really as long as they make a note of it on their computers. Thus I could pay back the CB monies or at least transfer an equivalent amount.

They were reluctant at first to accept the funds (surprisingly) but if you really want to pay early, they eventually relent. So shall I pay everything back now or not?

Separately, I had a long chat with the CB helpline which calmed many of my concerns. Question, when applying, they ask for the immigration status of the claimant on the CH2 application form (ie me a BC), but not the partner. Nowhere on the form is there anything about this for the partner, hence at the time I did not advise them that my wife was subject to immigration control (just her nationality, DOB, NI number). I have discussed it with them since, but I wonder if this could be construed as an issue by the home office when we renew the visa? Can anyone advise on this please.

Thanks.

[CR001]

No as you were/are the person claiming CB.

[Dante32]

No as you were/are the person claiming CB.

Ok thanks for this. I was worried.

As far as I can see, I have done nothing wrong and we are clean.

Paying back early would almost suggest an error somewhere, however in light of all of this, do I pay back or not prior to processing the application?

CR001, Casa, Petaltop. What do you all think?

[Casa]

My understanding is that any overpayment (as with anyone claiming CB on a higher income level) would be adjusted in the self-assessment. I can't see that there is a need to repay any adjustment early.

[Dante32]

My understanding is that any overpayment (as with anyone claiming CB on a higher income level) would be adjusted in the self-assessment. I can't see that there is a need to repay any adjustment early.

Ok thanks Casa. I am sensing that after this long, long debate, you are also concluding that it is ok to do nothing and just confirm to the PEO that the claims were made in my name for a BC child. Presumably they know about the Child benefit high income tax charge and understand that the monies will be repaid in full due to my year-end earnings?

[Casa]

My understanding is that any overpayment (as with anyone claiming CB on a higher income level) would be adjusted in the self-assessment. I can't see that there is a need to repay any adjustment early.

Ok thanks Casa. I am sensing that after this long, long debate, you are also concluding that it is ok to do nothing and just confirm to the PEO that the claims were made in my name for a BC child. Presumably they know about the Child benefit high income tax charge and understand that the monies will be repaid in full due to my year-end earnings?

Exactly.