Child benefit - can they take this much tax???

zagfles

Mumsiemoo wrote: »

The £1758 is on the coding notice. (I now think as someone suggested that may be the taxi reduction?)
On the back in the notice it says "we need to collect £703.56 by adjusting your tax code."

So they are taking part of your child ben back - looks like they expect you to earn around £54k inc your benefits.

zagfles

northerntwo1 wrote: »

Reclaiming 2011-12. Self assessment for 2012-13 hasn't happened and won't until this time next year.

It's a coding notice, it includes what they expect the OP to have to pay back in the tax year which the coding notice refers to. Not a payment of tax due from previous years (though sometimes these are included in coding notices too).

Mumsiemoo

Salary is around £46k plus company car so guess it would be around that figure.
Does the child benefit sound right then or do you still think it's too much?
Thanks everyone!

zagfles

Mumsiemoo wrote: »

Salary is around £46k plus company car so guess it would be around that figure.
Does the child benefit sound right then or do you still think it's too much?
Thanks everyone!

Actually I think it's too little! Do you pay into a pension? Have you done your self assessment for 2012/13, if so how much child ben did they take off you in the calculation?

Mumsiemoo

Sorry typed too quickly... Salary is £42k!!
No I don't pay into a pension and the self assessment I have recently completed is the first I have ever done.

Mumsiemoo

Sorry typed too quickly - salary is £42k inc overtime.
No I don't pay into a pension at the moment.

Mumsiemoo

Do I need to contact tax office then?
Thanks

zagfles

Mumsiemoo wrote: »

Sorry typed too quickly... Salary is £42k!!
No I don't pay into a pension and the self assessment I have recently completed is the first I have ever done.

Right - that makes sense. £42k plus your car/fuel allowance would make £53440 adjusted net income. They probably allow a bit of inflation so assume you'll earn £54k. Which would mean they'll claw back 40% of your £1770 child ben, ie a bit over £700.

It would be sensible to pay into a pension if you can afford it - you'll get tax relief and avoid the child ben charge, eg if you contribute £4k it'll only cost you about £1700.

Mumsiemoo

Ragfles - my wife is currently on mat leave so I can't really afford to at the moment. Could I pay a minimal amount into a pension which would mean I don't have to pay tax on child benefit but also don't decrease my monthly income too much?

zagfles

People are getting very confused here.

The deduction the OP mentions on his/her coding notice will almost certainly be referring to the "high income child benefit charge" which HMRC expects to be due in the year to which to coding notice refers. The figures provided make perfect sense for this.

If it had been for 12/13 it would have said "tax underpaid for previous years" or words to that effect, it wouldn't even have mentioned child benefit.

OP - when did you do the 12/13 self assessment? Did you pay the tax owed?