HMRC Wants their money back

SomeonesName

Hi,

I have been receiving child tax benefit but at the start of the last tax year my salary exceeded £50,000 per annum. I contacted the tax office and informed them so they could reduce payments or so they could work out how much tax I need to pay through say a tax code change. At the end of March I received a bonus payment from my employer which pushed my income over £60,000 in that tax year. I rang the tax office to notify them and to stop future payments as I knew the benefit equals the tax once your income reaches this value or beyond. The tax office now says they want all of the benefit paid back for the whole tax year because of my final total income.
I honestly didn't know I would get a bonus (my employer doesn't guarantee it) so I couldn't plan for this and stop/reduce the payments accordingly (as I did earlier in the year). But, is it correct the tax office can claim back from me what I needed earlier in the year?

Appreciate any pointers.

Kind Regards.

Horseunderwater

As far as I'm aware this is correct.

Prothet_of_Doom

But the HMRC can be negotiated with, so that you can spread the repayements.

dippy3103

Did you mean child benefit or child tax credit?

Larac

I was in a similar position re a bonus which is hit and miss as to whether you get any and ended up paying back the child benefit via my tax code last year. Quite a painful exercise as I ended up paying an additional £300 a month in tax for a number of months. I have now opted out as the same thing could happen again.

SomeonesName

dippy3103 wrote: »

Did you mean child benefit or child tax credit?

Hi, it is child benefit, I don't claim tax credits.

thanks.

SomeonesName

Thanks for everyone's comments, I guess it must be right that the tax office can recall the benefit. It does seem strange if you compare it to receiving income support then getting a job and then they recall that benefit.
I'm already paying £100 per month because my last employer apparently didn't notify the tax office I was in the 40% rather than 22% tax bracket!

Thanks again.

xylophone

Make pension payments to reduce adjusted net income? http://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners