High Income Child Benefit Charge

Dazed_and_confused

As the charge is calculated on the higher earners income how could you have possible paid the correct amount in any year when your wife's income was higher.

More likely she owes the charge and you are due a refund or that year (if it's possible to claim a refund in this slightly unusual situation)

MrChips

My understanding was that once you go over £60k, you have to pay it all back so it wouldn't make any difference who earned more?


I made sure that I paid everything due, and I was usually the higher earner anyway.

xylophone

https://revenuebenefits.org.uk/child-benefit/guidance/how-do-child-benefit-and-guardians-allowance-work/high-income-child-benefit-charge/

Cath27

I too received a letter through the door today, amount of high income child benefit going back 4 years to 2013. How ridiculous, if they had notified me sooner rather than now i wouldn't be in this situation. These government depts really do need to communicate to each other to prevent messes like this.
Having read the posts here, there is no appeal and everything must be paid back with a penalty even if you were unfortunate to be unaware or paid no attention to the changes of the child benefit. It will be hard to find the money to pay HMRC back and they are filling their coffers with the additional penalties that everyone who receives a letter needs to pay. As a single parent i don't think i earn a lot, the child benefit was a great help to me when money was tight.

garsam12

Cath27 wrote: »

I too received a letter through the door today, amount of high income child benefit going back 4 years to 2013. How ridiculous, if they had notified me sooner rather than now i wouldn't be in this situation. These government depts really do need to communicate to each other to prevent messes like this.
Having read the posts here, there is no appeal and everything must be paid back with a penalty even if you were unfortunate to be unaware or paid no attention to the changes of the child benefit. It will be hard to find the money to pay HMRC back and they are filling their coffers with the additional penalties that everyone who receives a letter needs to pay. As a single parent i don't think i earn a lot, the child benefit was a great help to me when money was tight.

Nothing prevents you from appealing against penalties, but read carefully grounds for appeal on HMRC website or even better talk to a lawyer or professional financial adviser before you submit any statements to HMRC. The fact that you didn't know about new law is not an excuse and most likely will not be accepted. Although statement that form was lost by RM, for example, might work. Likewise it is quite possible that person could have forgotten that he receives CB, especially if they claimed initially years ago (In my case I didn't even know that my wife has claimed CB until I received demanding letter from HMRC).
Anyway, if you can find money anywhere or borrow from the bank, pay them full amount as soon as possible. HMRC is selfish and greedy organisation, they don't care about your problems but they have a lot of power regarding ways of recovering debts from taxpayers. They will keep charging you with penalties and interest and after certain period of time they can even arrest your possessions or withdraw money from your bank account without taking you to the court. After debts are paid, you can try to appeal against penalties, but I would strongly recommend to consult with professionals or at least study carefully HMRC website before you start.
Also don't forget to send complain to your MP. The more letters we will send, the more chances that unfair and unjust law will be changed in the future.

GOV_RIP

I agree that this is ridiculous and after reading this thread I am not sure with whom I am the most frustrated; the government for not writing to me to ENSURE this is known & understood, OR the people on this thread who have so arrogantly replied that not knowing is not an excuse and receiving a large bill such as this is acceptable.

I too, only learnt of this change in legislation recently due to a letter requesting 4 years of child benefit which I do not receive and have never received; my wife ( a mother and homemaker) has always received this benefit since 2005 and when discussing this with other Mums found that ALL believed Child Benefit to be given by the government to mothers regardless of income and was never contacted by HMRC to explain the new legislation. It seems strange that despite being able to provide my wages history for several years and clearly being in possession of our correct postal address as well as up to date contact details we never once received any information regarding our eligibility to receive child benefit.

Every year I received a statement clearly explaining that I am entitled to no form of tax credits or any other benefit so have received nothing - how was I to know that this statement did not include Child Benefit because it was infact relating to all other working benefits. Why would I question a benefit that I do not receive and one fine day decide to question my wife about the Child benefit paid every year by the government (without question).

I have three children and I have worked extremely hard to get over the 50k threshold after spending many years prior to this desperately keeping my head and shoulders above the debt threshold, utilising credit card balance transfers and bank overdrafts so constantly dipping in & out - emotionally draining. So I pushed myself harder and harder until I broke through that 50k barrier and never stopped - worked away from home mostly to achieve this and was dedicated to maintaining the momentum in fear of slipping back and desperate to keep up with the demands put upon me at work. I had long given up on television and rarely had anytime for newspapers. I have met many, many interesting and intelligent people during this time and I am professional so work within a highly academic (many PHD employees too) & skilled environment for one of the biggest employers in the world.... yet not once has this been a topic of conversation so I certainly do not believe we are all ignorant to this supposedly well publicised issue.

......... and yet I read on this thread that there are those who perceive ME (and others like me) as the problem
ME ............University graduate and PAYE employee
ME ............ a credit to upholding & maintaining our society for our good and that of our children
ME ............ worked hard to progress and do better for my family and pay more tax (40%) along the way
ME ............. costs the government nothing, with my wife receiving only what we believed we were entitled to.
ME............ a home owner paying an exorbitant mortgage like most others and paying every tax & insurance the government deem fit to demand of me.

I am clearly a criminal in your arrogant eyes .......... I hope you never cross a real criminal in this country because they are a significantly worse threat to society and this government than ME.

To those fools chomping at the bit to tear this apart .......... I have provided you (specifically) much material ........ so go for your lives in your attempt to justify & give credibility to this legislation & penalties incurred as a result so only proving the small mindedness that created this issue for those of us just trying to get by in the best way possible while trying not to harm others but promote good people wherever possible.

GOV_RIP

"garsam12" makes a very good point too that I too have considered, which is to contact my MP and request the number of families within my constituency that have been impacted in a similar manner because these figures should be made available so to better understand how much of a problem this is becoming.

badmemory

GOV_RIP wrote: »

the people on this thread who have so arrogantly replied that not knowing is not an excuse

I think that you are misunderstanding some posters points. They are merely stating HMRCs attitude. They do indeed state that ignorance is not an excuse & that is always HMRCs stance. The fact that their own website seems to be less than informative seems to them to be irrelevant. All of us are going to have to 'up our game' regarding our tax responsibilities as HMRC no longer feel any responsibility to inform us of them until there are fines/penalties to charge (usually after several years).

With the changes in peoples employment status, zero hours & 3 jobs to get by etc etc, the importance of teaching this in schools is becoming more important annually. Unfortunately, it is not in HMRCs interest to have anything to do with this as it will dramatically decrease the fines, penalties & interest charges that they will be able to make.

GOV_RIP

"badmemory" - thank-you and I agree with your reply, although I do think some of the replies in this thread are unnecessarily harsh, however your point of clarity is well received

It is extremely frustrating especially when it comes to finances. The point for most is that this bill comes all of a sudden with no warning or direct opportunity (due to ignorance if that's what we have been) ....... but like most this was in no way intentionally burying our heads in the sand .... I had so much more confidence and backing for our government until this! These are the politicians that are using our tax money to fund their expenses etc then the hypocrites hit us for child benefit for an earning threshold of the highest paid individual (not combined household) where this threshold is perceived to be more than ample to live ........ does not seem to add up as per usual - 'legalised criminals' and yet we continue to plod along and tolerate this behaviour. I have never felt so insulted and personally invaded + offended by this bill presented by our government in this way with a caveat of 12 months to pay or expect the bailiffs and further charges..

Wayne_O_Mac

GOV_RIP wrote: »

I agree that this is ridiculous and after reading this thread I am not sure with whom I am the most frustrated; the government for not writing to me to ENSURE this is known & understood, OR the people on this thread who have so arrogantly replied that not knowing is not an excuse and receiving a large bill such as this is acceptable.

I too, only learnt of this change in legislation recently due to a letter requesting 4 years of child benefit which I do not receive and have never received; my wife ( a mother and homemaker) has always received this benefit since 2005 and when discussing this with other Mums found that ALL believed Child Benefit to be given by the government to mothers regardless of income and was never contacted by HMRC to explain the new legislation. It seems strange that despite being able to provide my wages history for several years and clearly being in possession of our correct postal address as well as up to date contact details we never once received any information regarding our eligibility to receive child benefit.

Every year I received a statement clearly explaining that I am entitled to no form of tax credits or any other benefit so have received nothing - how was I to know that this statement did not include Child Benefit because it was infact relating to all other working benefits. Why would I question a benefit that I do not receive and one fine day decide to question my wife about the Child benefit paid every year by the government (without question).

I have three children and I have worked extremely hard to get over the 50k threshold after spending many years prior to this desperately keeping my head and shoulders above the debt threshold, utilising credit card balance transfers and bank overdrafts so constantly dipping in & out - emotionally draining. So I pushed myself harder and harder until I broke through that 50k barrier and never stopped - worked away from home mostly to achieve this and was dedicated to maintaining the momentum in fear of slipping back and desperate to keep up with the demands put upon me at work. I had long given up on television and rarely had anytime for newspapers. I have met many, many interesting and intelligent people during this time and I am professional so work within a highly academic (many PHD employees too) & skilled environment for one of the biggest employers in the world.... yet not once has this been a topic of conversation so I certainly do not believe we are all ignorant to this supposedly well publicised issue.

......... and yet I read on this thread that there are those who perceive ME (and others like me) as the problem
ME ............University graduate and PAYE employee
ME ............ a credit to upholding & maintaining our society for our good and that of our children
ME ............ worked hard to progress and do better for my family and pay more tax (40%) along the way
ME ............. costs the government nothing, with my wife receiving only what we believed we were entitled to.
ME............ a home owner paying an exorbitant mortgage like most others and paying every tax & insurance the government deem fit to demand of me.

I am clearly a criminal in your arrogant eyes .......... I hope you never cross a real criminal in this country because they are a significantly worse threat to society and this government than ME.

To those fools chomping at the bit to tear this apart .......... I have provided you (specifically) much material ........ so go for your lives in your attempt to justify & give credibility to this legislation & penalties incurred as a result so only proving the small mindedness that created this issue for those of us just trying to get by in the best way possible while trying not to harm others but promote good people wherever possible.

Too long, didn't read.