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Higher Earner Child Benefit Charge

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  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    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.

    Create your own thread in order not to confuse your problem with the OP.

    Need more information from your 2 paragraphs

    Suggesting contacting the authorities on the top of the letter perhaps?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.

    Do not ignore it - it will be an expensive mistake.
  • My husband has also received this letter two days ago and like yourself we have never heard of this our children were born in 2001 & 2005 and the only correspondent we have received rehashing child benefit was when they wrote to tell me I would no longer receive a payment for my oldest child who had left high school to go to college. Unfortunately for us his earning were over the 60K which means we could potentially owe a substantial sum. Through these six years I was not working but in full time study and upon further research after this letter my understanding is 2 parent cities earn 49K each so household income of 98K and still get child benefit??? Doesn’t seem right!!!
    Why were people not informed of this charge by child benefit system or HMRC 6 years ago when it was apparently enforced?? HMRC know how much my husband earns as they take great pleasure in sending him a letter yearly stating how they are spending his tax (which again is a substantial amount taken from his pay) I think this despicable, like you said the letter is poorly written and to a degree threatening. Why would he file a tax return when he’s employed and pays tax through PAYE?? I won’t be letting this go without a fight, lovely present right in time for Christmas!!!!!!!!!
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Val111 wrote: »
    My husband has also received this letter two days ago and like yourself we have never heard of this our children were born in 2001 & 2005 and the only correspondent we have received rehashing child benefit was when they wrote to tell me I would no longer receive a payment for my oldest child who had left high school to go to college. Unfortunately for us his earning were over the 60K which means we could potentially owe a substantial sum. Through these six years I was not working but in full time study and upon further research after this letter my understanding is 2 parent cities earn 49K each so household income of 98K and still get child benefit??? Doesn’t seem right!!!
    Why were people not informed of this charge by child benefit system or HMRC 6 years ago when it was apparently enforced?? HMRC know how much my husband earns as they take great pleasure in sending him a letter yearly stating how they are spending his tax (which again is a substantial amount taken from his pay) I think this despicable, like you said the letter is poorly written and to a degree threatening. Why would he file a tax return when he’s employed and pays tax through PAYE?? I won’t be letting this go without a fight, lovely present right in time for Christmas!!!!!!!!!

    What exactly are you going to fight?

    Bottom line is your family received money they weren't entitled to and any overpaid child benefit will need to be paid back.
  • Val111
    Val111 Posts: 5 Forumite
    edited 13 November 2019 at 8:17PM
    Received money which in 2001 and 2005 when our children were born everyone was entitled too. Had we been informed when this was introduced in 2013 then we would not have claimed it. So for HMRC to take 6 year to contact people is not right, those receiving it should have been made aware of changes by correspondence in 2013.
    If you can’t give constructive feedback don’t comment.
  • sheramber
    sheramber Posts: 22,614 Forumite
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    The Child Benefit Office is a totally separate department from HMRC with separate computers . Until recently HMRC had no access to the information held by CBO so had no knowledge of who was getting paid child benefit.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    sheramber wrote: »
    The Child Benefit Office is a totally separate department from HMRC with separate computers . Until recently HMRC had no access to the information held by CBO so had no knowledge of who was getting paid child benefit.

    To add to that, child benefit is usually paid to the lower earner (under £50k) but is repayable by the higher earner (over £50k). Neither the child benefit nor HMRC systems would automatically link the parents as we no longer have "joint taxation" - for tax purposes, couples aren't linked in the income tax database so it's not information that HMRC would readily have.
  • I have received exactly the same today and we too guest received child benefit when our daughter was born in 2010 and had no idea about this. I can't believe we were not informed sooner and am really worried we will have to pay back alot of money. Would be grateful for any info you have found helpful. Feel it is really unfair and should have been aware of this in 2013 or as soon as earnings hit that level. Thanks
  • So unfair when you are totally unaware of something. As you said if we had been notified of this in 2013 I would have been more that happy for child benefit payments to stop. How can you act on something you are completely unaware of! We have had a letter today!
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Lisame wrote: »
    How can you act on something you are completely unaware of! We have had a letter today!

    To be fair, it was all over the news when it was first announced. On TV & radio news, in the newspapers, all over social media - it was the headlines for a few days.
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