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Just received my new tax code for 2015/2016 today and I've got a reduction on my allowance due to child benefit.
If my wife was to stop receiving the benefit and I inform the HMRC would the code change or are they recouping last year through next years code?
Been on the phone to them and had 2 different answers in the same conversation.
Thanks
You should only have a reduction in your tax allowance based upon you filling out a tax return and electing to pay any outstanding tax through your code. As far as I am aware they do not recoup this years child benefit over payments through your current code.
Basically you have a choice
1, Accept the child allowance and pay it back at the end of the year (in full if higher rate taxpayer)
2, Don't accept child allowance - avoid the repayment, but if your income drops below a certain amount (60k i think) you cannot retrospectively claim the child allowance
Hope this helps (IANAA)
so basically next years code is recouping this years credits, so if we stop them in March I could avoid self assessment next year?
or are they recouping last year through next years code?
I think it'd be this.
I don't think you can opt out of child benefit now, can you?