High Income Child Benefit Tax Charge

[Durhamlandy1]

Hi.

After some advice. My salary is higher than the 60k maximum point at which child benefit must be repaid as tax or alternatively can opt out of the scheme.
I've stayed in the scheme as advised by my accountant as my wife works for a charity and her salary is not enough to even be taxed. The rationale my accountant made was that as she doesn't make contributions, and the child benefit is by default in the ladies name when setup if married and living together, I should keep recieving and paying back as it ensures she receives her stamp for pension contributions in the later years of life.
Now the above is all fine, but being stumped with a 2k bill every July, to be paid in January is a bit disheartening.
What's the thoughts on the above, what do other people do - do I need a more creative accountant?!

Thanks.

[2 GKC]

That’s bullst. You can register for it and not claim it. Your wife still gets the pension benefit that way.

[Butter Face]

Why don’t you opt to have it repaid using your tax code? You (almost) don’t notice it then.

[hepy]

2 GKC said:

That’s bullst. You can register for it and not claim it. Your wife still gets the pension benefit that way.

This is the solution, and takes 2 minutes. Unless you effectively want the government to loan you money throughout the year, then you pay back interest free.

[CAH706]

Sorry to add a question into this OP

If your wife worked as a higher earner and you were retired (early), would claiming the child benefit (but not taking the money) keep NI payments accruing? I’m likely to be in that position and short of fully paying my NI contributions.

Thanks

[mfmman]

CAH706 said:

Sorry to add a question into this OP

If your wife worked as a higher earner and you were retired (early), would claiming the child benefit (but not taking the money) keep NI payments accruing? I’m likely to be in that position and short of fully paying my NI contributions.

Thanks

Only if your youngest child is under 14

[mfmman]

Durhamlandy1 said:

Hi.

After some advice. My salary is higher than the 60k maximum point at which child benefit must be repaid as tax or alternatively can opt out of the scheme.
I've stayed in the scheme as advised by my accountant as my wife works for a charity and her salary is not enough to even be taxed. The rationale my accountant made was that as she doesn't make contributions, and the child benefit is by default in the ladies name when setup if married and living together, I should keep recieving and paying back as it ensures she receives her stamp for pension contributions in the later years of life.
Now the above is all fine, but being stumped with a 2k bill every July, to be paid in January is a bit disheartening.
What's the thoughts on the above, what do other people do - do I need a more creative accountant?!

Thanks.

I think it's just your wording but she needs to receive it, not you

[2 GKC]

Nobody needs to receive it. When you register for it, you’re asked if you want to claim it.

[Eric Mc]

2 GKC said:

That’s bullst. You can register for it and not claim it. Your wife still gets the pension benefit that way.

When the scheme was first introduced, this was indeed a problem which the government rectified.