Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • gb908010
    • By gb908010 11th Jun 17, 12:33 PM
    • 8Posts
    • 1Thanks
    gb908010
    Been told to pay back child benefit, please help
    • #1
    • 11th Jun 17, 12:33 PM
    Been told to pay back child benefit, please help 11th Jun 17 at 12:33 PM
    I have just returned from holiday to find a letter from hmrc saying I need to pay back child benefit for the past 3 tax years 2014,2015 and 2016.

    My basic salary over these years has been £46k, £52k and £50k respectively plus my company car benefit.(£6k)
    Now I didn't have a clue about this ruling and never received any letters otherwise I would have nipped it in the bud.

    I've been told to pay back £1,817 for those 3 years😩, this has really annoyed me as I honestly didn know.
    I'm employed and taxed via paye so no self assessment.

    What are my options? Have I just got to bite the bullet and pay it? Or can I plead ignorance and try ask them to spread the payments over a period?
Page 1
    • ess0two
    • By ess0two 11th Jun 17, 12:46 PM
    • 2,890 Posts
    • 3,778 Thanks
    ess0two
    • #2
    • 11th Jun 17, 12:46 PM
    • #2
    • 11th Jun 17, 12:46 PM
    Set up a monthly pay plan, unfortunately its upto you to opt out of receiving CB, had similar issue myself.
    Official MR B fan club,dont go............................
    • gb908010
    • By gb908010 11th Jun 17, 12:58 PM
    • 8 Posts
    • 1 Thanks
    gb908010
    • #3
    • 11th Jun 17, 12:58 PM
    • #3
    • 11th Jun 17, 12:58 PM
    Did you get fined as well? That's what I'm dreading to be honest. Wonder how many families have been caught out with this.
    • xylophone
    • By xylophone 11th Jun 17, 3:47 PM
    • 22,388 Posts
    • 12,914 Thanks
    xylophone
    • #4
    • 11th Jun 17, 3:47 PM
    • #4
    • 11th Jun 17, 3:47 PM
    Had you considered increasing your pension contributions in future?

    https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners
    • Icequeen99
    • By Icequeen99 11th Jun 17, 4:31 PM
    • 3,386 Posts
    • 2,301 Thanks
    Icequeen99
    • #5
    • 11th Jun 17, 4:31 PM
    • #5
    • 11th Jun 17, 4:31 PM
    I have just returned from holiday to find a letter from hmrc saying I need to pay back child benefit for the past 3 tax years 2014,2015 and 2016.

    My basic salary over these years has been £46k, £52k and £50k respectively plus my company car benefit.(£6k)
    Now I didn't have a clue about this ruling and never received any letters otherwise I would have nipped it in the bud.

    I've been told to pay back £1,817 for those 3 years😩, this has really annoyed me as I honestly didn know.
    I'm employed and taxed via paye so no self assessment.

    What are my options? Have I just got to bite the bullet and pay it? Or can I plead ignorance and try ask them to spread the payments over a period?
    Originally posted by gb908010
    Are you sure you are being asked to pay back child benefit? Or are you being asked to pay the tax charge which on your income shouldn't be the full amount of child benefit received. You might want to get some advice as there could be penalties etc as well.

    IQ
    • gb908010
    • By gb908010 11th Jun 17, 4:49 PM
    • 8 Posts
    • 1 Thanks
    gb908010
    • #6
    • 11th Jun 17, 4:49 PM
    • #6
    • 11th Jun 17, 4:49 PM
    Thanks for the replies and the pension clue,I do contribute around £2,500 into my pension per year so potentially this would reduce the amount I have to pay back and seriously thinking of increasing my pension from 6% to 10% now.
    Would the hmrc take this from me with my wage slips as proof or would I need an accountant?

    I am not being asked to pay the full amount back only the tax charge.

    I am hoping not to pay fines as I truly didn't know about this ruling
    Last edited by gb908010; 11-06-2017 at 4:59 PM.
    • xylophone
    • By xylophone 11th Jun 17, 5:25 PM
    • 22,388 Posts
    • 12,914 Thanks
    xylophone
    • #7
    • 11th Jun 17, 5:25 PM
    • #7
    • 11th Jun 17, 5:25 PM
    https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
    • gb908010
    • By gb908010 11th Jun 17, 5:39 PM
    • 8 Posts
    • 1 Thanks
    gb908010
    • #8
    • 11th Jun 17, 5:39 PM
    • #8
    • 11th Jun 17, 5:39 PM
    Very interesting, thanks for that. Think I might need to speak to an accountant first.
    • Darksparkle
    • By Darksparkle 11th Jun 17, 6:22 PM
    • 4,434 Posts
    • 2,784 Thanks
    Darksparkle
    • #9
    • 11th Jun 17, 6:22 PM
    • #9
    • 11th Jun 17, 6:22 PM
    Given how publicised it was (and continues to be) I highly doubt they'd accept you pleading ignorance.
    Last edited by Darksparkle; 11-06-2017 at 6:26 PM.
    • gb908010
    • By gb908010 11th Jun 17, 7:12 PM
    • 8 Posts
    • 1 Thanks
    gb908010
    Well I must have been living in a shell as I have never heard of it until now, I've spoken to many of my work colleagues and they also were unaware of it.
    If you don't get sent a letter from hmrc how are you supposed to know about it?
    • teddysmum
    • By teddysmum 11th Jun 17, 7:37 PM
    • 8,027 Posts
    • 4,789 Thanks
    teddysmum
    Our children are adults, but we know about it. It was widely publicised on tv and in the newspapers.
    • gb908010
    • By gb908010 11th Jun 17, 7:45 PM
    • 8 Posts
    • 1 Thanks
    gb908010
    Our children are adults, but we know about it. It was widely publicised on tv and in the newspapers.
    Originally posted by teddysmum
    I don't read newspapers and rarely watch tv, I'll ring them and explain and see what they say.
    If I had known about it I would have nipped it in the bud along time ago as I've always updated tax office with items like company cars etc
    • xylophone
    • By xylophone 11th Jun 17, 9:36 PM
    • 22,388 Posts
    • 12,914 Thanks
    xylophone
    https://www.theguardian.com/money/2013/jan/03/child-benefit-changes-what-they-mean

    http://www.telegraph.co.uk/finance/personalfinance/tax/9781037/Child-benefit-how-to-beat-the-tax.html

    http://www.wardwilliams.co.uk/documents/Changes_to_Child_Benefit_1.pdf

    http://www.standard.co.uk/news/politics/david-cameron-hints-at-tax-break-to-halt-child-benefit-revolt-6520886.html
    • p00hsticks
    • By p00hsticks 11th Jun 17, 10:08 PM
    • 5,530 Posts
    • 5,072 Thanks
    p00hsticks
    If you don't get sent a letter from hmrc how are you supposed to know about it?
    Originally posted by gb908010
    Ignorance is not really an excuse - it's all our responsibility to keep abreast of major changes in legislation that affect us.
    It usually only requires making a note of what is announced in the budget and in the Queens speech at the opening of parliament each year.

    As others say, this change was pretty well publicised, and you can't expect the government to write individually to everyone potentially affected by every change in legislation.

    If you drive a car, you are expected to keep up to date with the latest laws on using mobile phones, wearing seatbelts, carrying children in cars etc

    If you expect to draw a state pension in future you need to keep in touch with any changes in state pension age

    and if you claim benefits you need to be aware of any changes to the elegibility criteria
    • TELLIT01
    • By TELLIT01 11th Jun 17, 10:14 PM
    • 3,706 Posts
    • 3,775 Thanks
    TELLIT01
    Ignorance is rarely accepted as a defence. I don't have any children and I was aware of the £50k earnings limit on entitlement. It certainly got a lot of publicity at the time it was introduced.
    • w06
    • By w06 11th Jun 17, 10:39 PM
    • 267 Posts
    • 385 Thanks
    w06
    Ignorantia juris non excusat

    been specifically tested too:

    http://www.rossmartin.co.uk/sme-tax-news/2519-child-benefit-charge-ignorance-of-law-no-excuse

    Even I'd heard of this, no kids, avoid politics and financial news mostly
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

323Posts Today

4,570Users online

Martin's Twitter