Higher Earner Child Benefit Charge

Dazed_and_confused

I am hoping they e-mail back and I can slowly re-pay through tax code adjustment if I have to.

If you owe something for the 2018:19 tax year you would have to file your Self Assessment return by 30 December 2019 in order for it to be possible to have it included in your (2020:21) tax code. And the amount owed for 2018:19 would have to be less than £3,000.

Anything owed for earlier tax years would have to be paid direct to HMRC.

Jlomas817

I’ve also got this letter and made me very anxious- I also had no previous knowledge of this change. Why make it so complicated especially for “blended families “ where the situation has changed several times.
H
Does anyone know how far back they will investigate if I declare for last tax year as per the letter?
Thanks

sheramber

Jlomas817 wrote: »

I’ve also got this letter and made me very anxious- I also had no previous knowledge of this change. Why make it so complicated especially for “blended families “ where the situation has changed several times.
H
Does anyone know how far back they will investigate if I declare for last tax year as per the letter?
Thanks

The charge was introduced 7 January 2013

badmemory

If there is a stay at home parent then do not completely cancel the claim. Just cancel the receipt of money from the claim & leave the basic claim in place as it gives the SAH parent NI credits which contribute to their state pension.


Maybe consider not voting tory again - as it was a typical "we are so rich we don't care" policy - not holding my breath on this however.


I have to say that it amuses me at every general election the number of people who actually believe that it is in their interests to actually vote against their interest by voting Tory. Presumably they all think that they are suddenly going to get rich!!!!!!!!!!! Yeah like that is actually goin to happen!!!.

vw_claus

Hi. I got the same letter recently to. I phoned HMRC to go through my figures. The adviser told me that my pension contributions couldn’t be used to reduce my income. Is this correct? I am part of a company scheme with my contributions taken directly from my wages. Have seen links elsewhere that say private pension contributions can be used but I am not sure about company ones. I am still contributing to a pension. I should at least be able to get the net contributions I would think like you can with private pensions. Anyone know if I can or not. Thanks in advance.

xylophone

I am part of a company scheme with my contributions taken directly from my wages.

Do you mean that your pension contributions are taken before tax is deducted? (So called "net pay").

Or do you mean that your pension contributions are taken after tax is deducted? (So called "relief at source").

See here http://www.retirementplanner-sw.com/digital_assets/15896/Relief_at_source_and_net_pay_-_avoiding_confusion.pdf

If "net pay" you have already received all the relief you are due on your pension contributions.

vw_claus

Thanks for your reply and example.

It is a net pay scheme I am in but I am still struggling to see why the relief at source method is allowed to use their contributions to reduce their income.

In the example in the link, yes net pay method pays less income tax but in both cases the net pay received and the amount going in to each pension is exactly the same. As a net pay pension member I appear to gain no advantage. I may be missing the blindingly obvious though!!

Thanks again.

Dazed_and_confused

I suspect HMRC are trying to avoid you double counting the pension contributions.

A net pay scheme means they are already deducted when arriving at your taxable income amount i.e. salary £60,000 less 10% net pay pension contribution = £54,000 taxable salary (the amount which goes on your P60).

With a relief at source contribution your P60 would show £60,000.

xylophone

In the situation in 19 above, the employee could open his own personal pension/stakeholder, pay £3200 into it and the provider would claim basic rate TR of £800.

The £4000 could then be deducted from the £54000 to then make ANI of £50000.

He would then claim higher rate relief of £800 through self assessment.

In effect the pension contribution has cost him £2400 and he keeps the CB.

WagonWheeler

Dose anyone know what the penalty is? or what would happen if you ignore the letter?

Totally not sure what they're asking me to do.