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Hit with a £3500 tax bill I cant pay

Gerrymouse
Posts: 53 Forumite
in Cutting tax
I have just been ht with a £3500 tax bill and told I should not have been getting child benefit since 2013, im flabbergasted, I am PAYE and they even gave me a tax refund last year so why has this only come up now, they say i never filled in a self assessment but why would I if I am in a regulary job with no other income??
I cant afford to repay this, will they give me time
I thought they were phrasing out the childcare by taxing you differently
Im devastated and scared witless I will have to go to court as I dont have savings, we are single income family that live hand to mouth monthly and the new halifax overdraft fees are about to finish me off
Please can anyone advise me
thanks in advance
I cant afford to repay this, will they give me time
I thought they were phrasing out the childcare by taxing you differently
Im devastated and scared witless I will have to go to court as I dont have savings, we are single income family that live hand to mouth monthly and the new halifax overdraft fees are about to finish me off
Please can anyone advise me
thanks in advance
0
Comments
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You should only need to repay some/all of it if during a tax year either you or your partner (living with you) earned over £50,000.
From your numbers it would seem that one of you earned over the £50k but not quite £60k if the debt is back to 2013.
Speak to the tax office and see what deal you can come to a deal to pay it back over a period monthly etc.
Many people are being caught out with this, personally I think it's disgusting that they are only just catching up from 5 years ago but as always with tax the onus is on the individual.0 -
If you fall into the £50K-£60K bracket then you are liable to be taxed on it. I was really peeved at the time as I was a single parent and knew others who had a joint household income of £80K and still able to claim it as they were both earning under £50K. When I ended up paying some back, HMRC agreed to recover by PAYE and ended up with a negative tax code for over a year. It was very painful and in the end I opted out as my salary kept going up and down due to what if (any bonus) my employer decided it was paying that year!0
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You’ll need to agree a payment plan with HMRC.
Whichever of you or your partner was earning over £50k should have been submitting a tax return since the introduction of the higher rate child benefit charge in 2013. This was highly publicised at the time.
There’s another long thread in this subject a bit further down.0 -
TheCyclingProgrammer wrote: »You’ll need to agree a payment plan with HMRC.
Whichever of you or your partner was earning over £50k should have been submitting a tax return since the introduction of the higher rate child benefit charge in 2013. This was highly publicised at the time.
There’s another long thread in this subject a bit further down.
Yes I vaguely remember but I also remember them saying they would gradually reduce through tax code, I never recall being asked to do any kind of self assessment and why give me a tax refund every other year , surely to goodness they have a profile of me0 -
Gerrymouse wrote: »Yes I vaguely remember but I also remember them saying they would gradually reduce through tax code, I never recall being asked to do any kind of self assessment and why give me a tax refund every other year , surely to goodness they have a profile of me
I think you have imagined the part about your tax code being reduced.
As with most things tax the onus is on you to notify HMRC.
What is your income?0 -
I think you have imagined the part about your tax code being reduced.
As with most things tax the onus is on you to notify HMRC.
What is your income?
Says here
https://www.google.co.uk/amp/s/www.moneysavingexpert.com/news/family/2013/01/child-benefit-cut-to-hit-1million-next-monday/amp
I earn under £60 once pension paid out0 -
I have no issues paying what I owe but will they allow me repay in small amounts ??0
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That link tells you that you need to register for Self Assessment.0
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Gerrymouse wrote: »I have no issues paying what I owe but will they allow me repay in small amounts ??
Depends what you mean by small. There will be interest on top of what you owe and potential late payment penalties. I think you can set up a time to pay arrangement through your online account.0 -
My husband was earning between 50-60k and we filled in a self assessment every year. After getting a new job he got a payrise so we opted out.
Annoys me too that you could both be earning £49k and still be entitled to it.0
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