Child benefit - divorced

steveinhants

Hello everyone.
Six years ago I divorced my then wife. I moved out to a new home. My ex wife remained the person who claimed child tax allowance - always been in her name.
After two years we decided we would live in the same house for pragmatic reasons. I moved back in in 2015. The child benefits remained in her name.
My earnings for the tax year 2016-17 were above the threshold and my tax advisor told me I had to repay the full amount - around £1700 I believe. I didn’t really think anything of it at the time and assumed it must be correct. I have just received a letter from HMRC stating I owe them again for the 2017-18 tax year. When I mentioned that I was divorced the HMRC call agent had no idea what that meant to my owing or not owing. Can anyone please tell me if I do indeed need to pay this and if not, should I have not paid the year before?
Thanks.

Rubyroobs

Did you make a joint tax credits claim again then when you moved back in ?

calcotti

This may be better posted on the tax board.
I think it comes down to whether or not you are a couple in the eyes of HMRC or are two people living in the same house but separately.

steveinhants

Rubyroobs wrote: »

Did you make a joint tax credits claim again then when you moved back in ?

No. We have never done a joint claim either before or after the divorce.

WhenIam64

When I mentioned that I was divorced

When was the decree nisi?

Rubyroobs

steveinhants wrote: »

No. We have never done a joint claim either before or after the divorce.

You probably owe HMRC a lot more then what they say then !

calcotti

Rubyroobs wrote: »

You probably owe HMRC a lot more then what they say then !

The OP hasn’t mentioned claiming Child Tax Credits, only Child Benefit and Child Tax Allowance. The latter of course doesn’t exist so I don’t know if he meant Child Benefit or Child Tax Credits.

Rubyroobs

calcotti wrote: »

The OP hasn’t mentioned claiming Child Tax Credits, only Child Benefit and Child Tax Allowance. The latter of course doesn’t exist so I don’t know if he meant Child Benefit or Child Tax Credits.

Apologies - I totally misread the post.

steveinhants

calcotti wrote: »

The OP hasn’t mentioned claiming Child Tax Credits, only Child Benefit and Child Tax Allowance. The latter of course doesn’t exist so I don’t know if he meant Child Benefit or Child Tax Credits.

It’s child benefit. I think my ex wife used to get around £130 per month (2 children). It has always been in her name since we had our first child.

xylophone

https://www.gov.uk/child-benefit-tax-charge/your-circumstances-change

A partner moves in or out
Your situation may change if your income is more than £50,000 and you move in or split up with someone who’s getting Child Benefit.

You’ll have to pay the tax charge if your income is more than £50,000 and higher than your new partner’s income. Your partner pays it if their income is higher.

The tax charge applies from the date you move in together to either the date you permanently separate or the Child Benefit stops - for example because the child is too old to qualify for it.

https://www.taxassist.co.uk/resources/show-question-and-answer/id/491/

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-living-together/

https://revenuebenefits.org.uk/child-benefit/guidance/how-do-child-benefit-and-guardians-allowance-work/high-income-child-benefit-charge/

Meaning of “partner”
(note this is the same as for tax credits)

Make of that what you will......