HMRC review of High Income Child Benefit charge

jameslyne74

The HMRC said in Nov 2018 that they would review cases and issue refunds of the charges where they thought we had a reasonable excuse to have not done a self-assessment and declared income between £50k and £60k. Has anyone had a response? The HMRC have told me that they have decided I did not have a reasonable excuse. They said that factors in my favour were that we had been claiming child benefit for years previous to the law change, at the time of the law change I was not earning above the threshold and that I only exceeded the threshold via overtime a year after the law change. However all of these were ignored because they state that they sent a letter informing me of the law change. I have no right of appeal against this decision but they have said I can launch a late appeal against the original penalty charge.

xylophone

However all of these were ignored because they state that they sent a letter informing me of the law change.

And you are claiming that you didn't receive it?

sheramber

i think the 'refund of charges' refers to the penalty charge( fine), not the tax charge due.

Hence, they have advised you to appeal the fine.

However, HMRC have started refunding these charges automatically.

https://forums.moneysavingexpert.com/discussion/6010302/child-benefit-fines-wiped-for-6-000-parents-mse-news

lindsey_29

I feel incredibly passionate about thus subject as it is so unfair. We are a one income family, as it is impossible for me to work due to my hubby having to work away. He is classed in the higher earner tax bracket. We lose all child benefit and also pay 40% tax. We are significantly worse off than if both of us were earning £30,000 how is this fair??? You should be able to use your partners tax free earnings that would make it fair. It also should go on income collectively for the single parents out there! It is only the children that lose out! It really doesn't pay to be an honest person in the UK. Why should all those people get away with receiving child benefit, when the honest people surrendered theirs??? Also why do you still have to claim child benefits in order for the non working parent to receive NI credits towards their pension, only to have to go through the complex and pointless task of having to pay it back???? #Bonkers #unfair

Dazed_and_confused

Have you been in touch with your MP about this?

If you don't agree with the law then they're the people who can change things.

calcotti

lindsey_29 wrote: »

Also why do you still have to claim child benefits in order for the non working parent to receive NI credits towards their pension, only to have to go through the complex and pointless task of having to pay it back?

You don’t. You can register for child benefit to get the NI credits but say that you don’t want to receive the payments in which case there is nothing to pay back.

As to how unfair it is - welcome to the Cameron/Osborne project.

Kentish_Dave

If you earn more then yes, you earn benefits. You think it unfair that you get less than lower earners but hopefully feel good that you pay a lower tax rate than higher earners, don’t lose your tax-free allowance as they do, don’t lose your ability to fund your pension by decent amounts and pay far less national insurance than they do.

For better or worse, we’ve a progressive tax and benefits system in the UK, with higher earners paying far more in to subsidies those less able to.

Your household is still on about double the median household income for the UK, you don’t need the state to subsidies your decision to have children.

calcotti

Kentish_Dave wrote: »

If you earn more then yes, you earn benefits. You think it unfair that you get less than lower earners but hopefully feel good that you pay a lower tax rate than higher earners, don’t lose your tax-free allowance as they do, don’t lose your ability to fund your pension by decent amounts and pay far less national insurance than they do.

For better or worse, we’ve a progressive tax and benefits system in the UK, with higher earners paying far more in to subsidies those less able to.

Your household is still on about double the median household income for the UK, you don’t need the state to subsidies your decision to have children.

The unfairness of the child benefit rules are that a household with one wage earner on more than £50,000 is hit by the charge but a two income household where neither party earns more than £50,000 is unaffected even though the household income may be much higher. in the context of a benefit to support children this arguably doesn't make much sense.

zagfles

lindsey_29 wrote: »

I feel incredibly passionate about thus subject as it is so unfair. We are a one income family, as it is impossible for me to work due to my hubby having to work away. He is classed in the higher earner tax bracket. We lose all child benefit and also pay 40% tax. We are significantly worse off than if both of us were earning £30,000 how is this fair??? You should be able to use your partners tax free earnings that would make it fair. It also should go on income collectively for the single parents out there! It is only the children that lose out! It really doesn't pay to be an honest person in the UK. Why should all those people get away with receiving child benefit, when the honest people surrendered theirs??? Also why do you still have to claim child benefits in order for the non working parent to receive NI credits towards their pension, only to have to go through the complex and pointless task of having to pay it back???? #Bonkers #unfair

Been discussed to death here. Of course it's unfair. In fact IMO it's deliberately unfair. Here's a previous discussion https://forums.moneysavingexpert.com/discussion/4369185/mse-news-child-benefit-cut-to-hit-1-million-next-monday

jjj1980

lindsey_29 wrote:

We are a one income family, as it is impossible for me to work due to my hubby having to work away. It also should go on income collectively for the single parents out there!

. Just quoted the relevant bits of a much longer post

I agree with the second quoted sentence, you don’t need potentially double the income before losing child benefit just by being part of a couple.

However, the first part slightly annoys me having been a single parent since my daughter was tiny and having worked since she turned 2. The delay only because I was recovering from abuse from her father, my ex husband. It’s not impossible for you to work just because your husband has chosen a job that means he works away. You just make use of nurseries, flexible working patterns and holiday allowance. I have very few childcare options as my mum still works full time, other relatives are too ill to rely on for help and I don’t actually agree with putting the responsibilities on them or friends. I still manage to work full time through negotiations with my employer. If you choose to not work through choice, then that’s fine but please don’t say that it’s “impossible”.

haras_nosirrah

Two parent families where they are both work full time will usually have childcare costs that the single working parent family don't have.

A full time childcare place in our area is around 60 a day so 1300 a month.