Rothmans Salisbury are happy to advise on all aspects of tax and accounting, including Child Benefit.
A couple earns £65,000, which is above the £60,000 threshold limit. It can be assumed that if they claim the benefit they will have to pay it all back in tax, however as it is only the higher earner’s income that is taken into account and as this income is below £60,000 only a proportion of the benefit will need to be repaid.
Based on an income of £55,000 you will repay 50% of the benefit received in a tax year. In the year 2013/14 the benefit for one child is £1,055 so in that year you would be £528 better off.
It is usually the main carer that claims and receives the child benefit. If that is your wife and she is not working or is not earning enough to pay national insurance then by claiming the benefit she will receive National Insurance credits and protect her entitlement to state pension.
Another reason to claim is your child will automatically receive a National Insurance number at the age of 16.
So at present it makes sense to make the claim. If your income should rise above the £60,000 limit you can opt not to receive the benefit but as your wife will still be entitled she will still get the NI credits.
The new High Income Child Benefit Charge will be charged through your self assessment tax return so if you are new to self assessment and need any help please get in touch.