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?