Child Benefit Repayment

TPTeeps

Hi,
I have been getting myself into a mess trying to work out why I have to pay so much back to the Tax office.
My employer has reported that I have earn't just over £63k this year and the Gov site shows that my annual tax-free amount is -£2,745.
I understand that I need to pay back child benefit as I have earn't too much. This isn't an issue, but I don't understand is that my tax-free amount has been deducted by £4,472 for child benefit...
I have 2 children and do not receive half of that value? So why do I have to pay back so much?
I phoned the HMRC and they stated a calculation based on 40% rolling up to 100% makes the value..... I explained that it didn't sense why I have to pay back more than I have received. They basically just said that is the way the system works... surely not?
I am not overly fussed that I owe Tax in other areas as that makes sense, just not £4,472..
Can anyone help?

Thanks

comeandgo

You only pay the tax of 40% of 4,472, not the full 4,472. HMRC are correct.

Dazed_and_confused

but I don't understand is that my tax-free amount has been deducted by £4,472 for child benefit...

Depending on where you are resident for tax purposes this reduction will mean your employer will be deducting either an additional £1788.80 (4472 x 40%) or £1833.52 (4472 x 41%).

This is not strictly paying back the Child Benefit as that only happens through your Self Assessment return. It is ensuring you have paid extra tax towards your High Income Child Benefit Charge and therefore your Self Assessment bill will be less than it would otherwise be.

Annual Child Benefit for two children does seem to be around £1,800 or thereabouts.

xylophone

Had you considered making pension contributions to enable you to keep CB?

https://www.theguardian.com/society/2018/sep/01/high-earner-tax-penalty-child-benefit-50000-salary-pension