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    • Helz123
    • By Helz123 7th Aug 17, 12:47 PM
    • 1Posts
    • 0Thanks
    Late Penalty charges due to overpayment of Child benefit
    • #1
    • 7th Aug 17, 12:47 PM
    Late Penalty charges due to overpayment of Child benefit 7th Aug 17 at 12:47 PM
    I think I have read one or two other posts on here regarding late penalty charges for self assessment on tax returns. My husband earned over the £50,000 threshold in years 2014/2015, 2015/2016 and 2016/2017. I was claiming child benefit during these years and had not realised that as he went over the earning that he was meant to complete a self assessment tax return. Although we are not disputing that we should pay back the child benefit, we did not receive any notifications of any need to complete a tax return at all until around May of this year so how can they say it was late if we did not realise it was something that needed to be done. We have already set up a direct debit to pay back the debt from the first year, this is £257 a month, we are finding this quite difficult to pay back but after phoning HMRC they said as we agreed to this amount we can't change it. Also one this amount is paid back we will still owe over £3000 which will be due in full. They don't really seem very willing to help us. All we wanted to do was bring the payments slightly lower to make it more manageable and not keep getting late penalties when like I said before we were never notified of any of this before May of this year.

    Just in case people think we are well off this is not the case. We used all of my husbands earnings on an extension we built and at the moment our daughter, son in law and 2 nearly 3 children are all living with us while they save for a mortgage. We are not in financial difficulty but had paid off our overdraft quite recently and now this is putting us back into it again.

    So would we be able to appeal the late penalties at all? Why are the people that you ring in HMRC just so harsh? Nobody seems willing to help or accept we know we should pay the money owed back. Also it is so frustrating that 2 people earning £49,000 in a household can still claim Child Benefit, who the hell came up with that rule???? How is that fair? Anyway I have since cancelled the child benefit of course.
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    • Tax Headache
    • By Tax Headache 5th Dec 17, 3:27 PM
    • 1 Posts
    • 0 Thanks
    Tax Headache
    Exactly the same has happened to me.
    No real change in my circumstances over recent years - only thing that has changed is the new rules applicable from Jan 2013. Surely there has to be some reasonable expectation that such changes need to be communicated directly and not simply rely on Media Ad Campaigns ??
    Now faced with more than £5k of over-payments plus Interest / Penalties being charged at 10% and 20% because I deliberately failed to notify HMRC and the excessive time that has lapsed!! Situation = Crazy.

    Take a look at the Charter on -
    1.2 "keep any costs to a minimum" - charging 20% interest for a debt I knew nothing about ??
    1.7 "charge interest and penalties where appropriate and be reasonable in how we use our powers"
    2.1 obligation on the taxpayer to "give us all the relevant facts and information ...we ask you for"

    Can anyone offer advice on whether HMRC can reasonably charge interest / penalties in this instance ?? Also is there any duration beyond which taxes cannot be reclaimed in this way ??
    • badmemory
    • By badmemory 5th Dec 17, 7:26 PM
    • 1,054 Posts
    • 1,114 Thanks
    From what I have read over the last few months HMRC no longer believe that the Charter applies!
    • Dazed and confused
    • By Dazed and confused 5th Dec 17, 7:34 PM
    • 1,950 Posts
    • 876 Thanks
    Dazed and confused
    According to HMRC only charge 3% interest not 10% (and it was only 2.75% last year).

    Not sure you have much chance with the interest as that is merely reflecting the fact that you've had the benefit of the money but penalties may be different?
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