Self assessment child benefit charge

Friday13th

Hi All,

I have a query about collection the child tax code via PAYE. Situation as follows:

2013-2014 - no repayment due
2014-2015 - £1200 repayment due (self assessment)
2015-2016 - £925 being collected via a tax code.

As I see it, I am paying £925 in advance for the tax year ending 2016 and also have to pay the £1200 for last year. My next tax code will take into account the amount owed in the tax year 2014-2015 and will also be collecting tax in advance for 2016-2017.

Am I understanding this correctly?

[Deleted User]

You are not paying in advance - you are paying on time. We are now ten months into 2015/16 tax year. You were £1200 underpaid in 2014/15 - tax that should have been paid by 5th April 2015. HMRC are trying to prevent this happening again by collecting 2015/16 in 2015/16.

Friday13th

I see what you mean, but am I right in thinking the tax for 2015-2016 repayable due to the child benefit charge would only fall due in Jan 2017, and if I complete the return by 30-12.16 they would collect it through the next years tax code. Is it obligatory to pay the charge through PAYE so that there is no tax due at the self assessment stage?

[Deleted User]

Yes - but if HMRC are including a deduction for the child benefit charge in 2015/16 FOR 2015/16 it is likely that there would be no underpayment of tax in 2015/16 and, therefore, no tax payable in January 2017 for that year.

Friday13th

True, it's is painful having to pay the tax for 2014-2015 in one hit as well as having the tax due for 2015-2016 collected at the same time.


Anyway I spoke to the helpful HMRC who explained that it wasn't a usual tax bill situation as I wasn't entitled to the CB in the first place so I had to pay the amount asap! They did agree to let me pay over 4 months which will help.