High Income Child Benefit Charge

Dazed_and_confused

You've been more successful than another recent tax case just published on the tribunal decisions part of gov.uk,

TC06835 Neil Johnstone

jsl1903

This might sound like a bit of a daft question, but I'll ask it anyway as my brain hurts with anything tax related.


We currently get Child Benefit for two children and my salary is just about to go over £60k, so I'll have to start paying back the full amount. If I cancel the Child Benefit, will my monthly PAYE tax reduce by the same amount as the monthly Child Benefit payment?


Sorry for such a Noddy question!

Dazed_and_confused

We currently get Child Benefit for two children and my salary is just about to go over £60k, so I'll have to start paying back the full amount. If I cancel the Child Benefit, will my monthly PAYE tax reduce by the same amount as the monthly Child Benefit payment?

Unless you let us know what your current tax code is and how it is made up it is impossible for anyone to answer this.

You might have a restriction in your tax code so you pay more tax towards your overall tax and HICBC. But plenty of people don't, they just pay the Self Assessment bill when it arrives. Or some delay payment even longer by having the Self Assessment bill included in their tax code i.e. 2017:18 bill would be paid over the 12 months from 6 April 2019 - 5 April 2020.

genieuk

keepthelinguini wrote: »

I just wanted to let everyone know that I appealed to the Tax Tribunal and won. I've just received confirmation that I'll receive a refund of everything I was asked to pay.

I'd recommend anyone with a similar grievance to appeal to the Tax Tribunal. I had no representation - it's not necessary, and it's a very simple process.

Hi

We have just handed over £4300 the online portal figures were different to the letter received. Each email we had from HMRC never included any interest they would charge. A figure of £4002 was agreed then the letter recieved had additional amounts.


My husband was a serving soldier at the time and was stationed in Saudi Arabia and until receiving his army pension was not above the threshold.


Any advice on appealing would be helpful



Thanks in advance

theBigHouse

Its george Osborne we should all be going after, not each other.
That chinless wonder wouldn't know a hard days work if it hit him on the face.
I work my arze off, out of the house 11-12 hours a day, check emails out of hours etc. Why do I have to pay more tax for that !!

Baldbrewer

Hi,
Firstly I am also one of the people whom didn't know about this issue, having 2 children the last of which was born in 2002 had no interaction with CB dept since 2002. Being PAYE my earnings have crept above the £50K in the last three years.


I received one of these letter last week and like many was shocked, so please no replies about How I should have known etc.


Having used the online calculator it looks like I'm liable for £3K plus any penalties which its seems they may waver according to the letter.
I have emailed them promptly and received the generic "we will reply within 21 working days" clearly not a business with this response time but I digress.


So I have 2 questions:

1. Does anybody know if the HMRC offer payment plans or can they adjust my tax code to recoup the amount I owe? (like many families only one of us earns just over the £50K mark so we do not have buckets of cash laying around.)
2. Has anybody got clear and concise details on how they have appealed and won against this issue? (I'm not going to repeat the discussions of unjustness etc I just want clear information).

Please no comments about my poor grammar or spelling mistakes. Like many kids from the 70's my dyslexia went undiagnosed and we were just called stupid.


Many thanks,
Baldbrewer.

Dazed_and_confused

Does anybody know if the HMRC offer payment plans or can they adjust my tax code to recoup the amount I owe? (like many families only one of us earns just over the £50K mark so we do not have buckets of cash laying around.)

They have been known to offer payment plans.

You could have Self Assessment liability for 2018:19 included in your 2020:21 tax code providing you file your 2018:19 return by 30 December 2019.

Similar for 2019:20 liability in due course.

You cannot have this liability for 2017:18 or earlier included in your tax code.

Has anybody got clear and concise details on how they have appealed and won against this issue? (I'm not going to repeat the discussions of unjustness etc I just want clear information).

Appealed against what?

xylophone

https://www.mirror.co.uk/money/mum-wins-5000-back-hmrc-20174596

wheldcj

So. I had a letter about the 2017-2018 tax year and potential for high income tax charges yesterday.

Stressed out I did some research and knew I would have to pay just over £1k and called today. They took some details and talked about human rights acts which seems OTT!

Anyway they have said they don't intend to levy a penalty, is this a common approach now? However they now have to review my calc, which I came to after using their calculator. Is this the norm, he said it will take a few weeks. I never owe money and would prefer to just get this done and dusted.

There must be a better way for us PAYE wage slaves?

unholyangel

wheldcj wrote: »

So. I had a letter about the 2017-2018 tax year and potential for high income tax charges yesterday.

Stressed out I did some research and knew I would have to pay just over £1k and called today. They took some details and talked about human rights acts which seems OTT!

Anyway they have said they don't intend to levy a penalty, is this a common approach now? However they now have to review my calc, which I came to after using their calculator. Is this the norm, he said it will take a few weeks. I never owe money and would prefer to just get this done and dusted.

There must be a better way for us PAYE wage slaves?

Was it a voluntary disclosure letter? It was just a way to flag it to your attention and give you the opportunity to correct an honest mistake. Which is probably why they don't intend to levy a penalty - it would remove all incentive to work with them and create incentive to work against them. Working with them usually results in a better outcome for all involved.

Don't stress. It will get sorted. Their timescales are maximum (well, assuming nothing goes wrong!), it could be quicker. You could also log into/sign up to the personal tax account.