High Income Child Benefit Charge

GOV_RIP wrote: »

......... and yet I read on this thread that there are those who perceive ME (and others like me) as the problem
ME ............University graduate and PAYE employee
ME ............ a credit to upholding & maintaining our society for our good and that of our children
ME ............ worked hard to progress and do better for my family and pay more tax (40%) along the way
ME ............. costs the government nothing, with my wife receiving only what we believed we were entitled to.
ME............ a home owner paying an exorbitant mortgage like most others and paying every tax & insurance the government deem fit to demand of me.

I am clearly a criminal in your arrogant eyes .......... I hope you never cross a real criminal in this country because they are a significantly worse threat to society and this government than ME.

To those fools chomping at the bit to tear this apart .......... I have provided you (specifically) much material ........ so go for your lives in your attempt to justify & give credibility to this legislation & penalties incurred as a result so only proving the small mindedness that created this issue for those of us just trying to get by in the best way possible while trying not to harm others but promote good people wherever possible.

Nobody has said your a criminal, or even implied it in the slightest, but you seem to have the belief that because of the things you have listed that you deserve special treatment, or are somehow special, or a better person of higher social and moral standing because you've been to university or earn at the levels that you do and own your own home.

The fact is you're no better than someone who works just as hard but earns less than half of the income you do. Neither is someone who earns twice as much as you of any higher social or moral standing to you or anyone else.

I earn less than £20k, I have my own home, I've never broken the law, I work hard, pay my taxes, pay my bills, deal with disability and mental illness daily, I have a HNC in Engineering and NVQ 3 in sheet metal work and fabrications, plus a NVQ2 in customer Service, but I'm no better or worse than you or anyone else, anywhere.

All that matters here are facts.

This policy was introduced by the Treasury in the Budget statement of 2012 to begin from 7 January 2013.

It was extensively reported in every UK newspaper. HMRC sent out extensive publications.

Its noted on child benefit award notices issued since 2013.

There is extensive information on the Gov. Uk website.

It was extensively discussed on TV, radio and internet forums such as this one.

Each individual liable to UK tax is responsible for their own tax, even those who are employed and have tax deducted under PAYE.

It was even noted on the tax code notice.

If you believe the penalty charged is incorrect and you have a suitable reason why the information was not provided to HMRC on time then write in to appeal/object.

I've said several times on this topic, people are going to have to start taking much more notice and responsibility when it comes to their tax affairs.

Changes coming over the next few year will mean that taxpayers will have to take matters much more in their own hands. The hand holding that has gone on for many years is coming to an end.

The introduction of the online Personal Tax Account will see administration of individual tax affairs dealt with much more by the taxpayer.

Eventually in most cases, with some exceptions, people will be expected to update their income details, benefits in kind, amend tax codes etc online and will not be dealt with by telephone.

As for why HMRC dont know who is claiming Child Benefit when the Child Benefit Office falls under the umbrella of HMRC, is because the Income Tax/Self Assessment department is totally seperate to Child Benefit Office, just as Tax Credit Office, Customs, National Insurance Office, Border Force, Immigration Office are all separate departments but all fall under the umbrella of HMRC. This means each office is a seperate entity and as such they do not have access to each others systems. This means CBO dont know how much each claimant earns.

This has come about now because the department dealing with income tax is working through a worklist of Child Benefit claimants, and checking this against the claimant and other people within the same household who are earning in excess of £50k.

Those who still have not notified HMRC prior to an assessment being raised will most likely have to pay a penalty for failing to notify the tax office of the fact their income is higher than the £50k limit.

This means that people have had 3 to 4 years to notify HMRC themselves and potentially avoid the penalty.

I see and hear the argument regarding who receives the child benefit all the time.

Whilst child benefit is paid to only 1 person, the payment is designed to cover some of the additional costs faced within the household based on the number of children within that household. It does not mean the money belongs only to the person receiving it.

Finally, whilst the child benefit charge applies to the highest earning taxpayers earning more than £50k in a household where child benefit is paid (assuming it is paid to the claimant, partner or spouse and not to a dependant of the higher earner) there is no requirement for the claimant to give up the child benefit, they can choose to continue receiving the payments, it just means that the highest earning taxpayer with income over £50k, will have to pay the charge year on year where applicable.

The child benefit charge is calculated as 1% of child benefit amount to be repaid for each £100 income over £50k.

Whether the policy is right or wrong, fair or unfair is not for me to decide. I have my own opinion that I keep to myself.

As this is the 4th or 5th time I've provided this info I will no longer make comment on this topic or any other topics regarding HICBC.

Also caught out by this, as have an alarming amount of others in my office (a colleague was contacted by HMRC, which prompted a few of us to check our own situations).

The real stinger for me, which I object to and which feels completely unfair- is that BIK gets added to your salary- and for three years this additional BIK took me over the threshold.

I didn’t earn 50k. And any vague recollection of any advertising campaign by HRMC didn’t mention that we have to add BIK ontop of our salary to get our ‘actual earnings’.

The colleague that was contacted by HMRC was caught after they reviewed 2012-13 data (I believe). So they are working through a huge backlog. Thousands of people will get caught by this. Which kind of implies that the process doesn’t work?

There a thread somewhere on here from me many years ago

I brief my now ex wife and I had a child in 2006 both low earners at that point so claimed child benefit

2010 we got divorced , she kept the child benefit payment and I paid her maintence

2014 my earning tipped over 50k , I hadn't received anhythinhg from hmrc , I was aware of the cb changes but as I wasn't receiving cb didn't worry

A year or so later nasty letters from hmrc that I owe them money for claiming cb and earning over 50k

I explained there must be some mistake as my ex wife gets the cb, I even sent them her bank statements etc - they wouldn't back down as they insisted that even though she gets the money the claim was in my name

In the end I won as they couldn't prove I had made the original claim (the recording from 2006 was scrambled)

Incredibly worrying and frustrating few months - and the audacity to still pursue me despite acknowleding I hadn't been receiving any money

If anyone can find my thread please read : some support from peeps on here but lots of I should have known better

I maintain I did nothing wrong and believe hmrc / cb have made a mess of this catching lots of innocent folk out

Its another department is a crappy excuse