Writing off Child benefit debts by HMRC

Fitnessisgood

I wonder if Martin has reached out to the government to see if they are willing to write off the debt of those having to pay back Child benefits backdated to when the threshold of £50k was put in? I’m a single parent and owe over £2.5k which I’m having to pay back in instalment.  Hard especially if people are furloughed.  This is due to HMRC systems not being joined up. 

jayzor

Why on earth would they write of tax payers money you weren’t entitled to?

Gonna-be-debt-free

Why would they write it off?

poppy12345

No of course not. You owe the money so it has to be repaid back.

[Deleted User]

Fitnessisgood said:

This is due to HMRC systems not being joined up. 

It is not due to the HMRC systems not being joined up. The issue is you claimed money which you were not entitled to, then spent that money. I know people who did not claim it due to being illegible due to earning over £50k pa, I know others who let the claim go through as they were unsure if they would be over the threshold due to bonuses, commission etc. but put the money to one side in case they needed to repay it. 

To claim that it is HMRC's fault that you claimed money you weren't entitled to, then spent it is disingenuous. To expect that to be taken as a loss by taxpayers is incredibly selfish. 

LilElvis

Fitnessisgood said:

I wonder if Martin has reached out to the government to see if they are willing to write off the debt of those having to pay back Child benefits backdated to when the threshold of £50k was put in? I’m a single parent and owe over £2.5k which I’m having to pay back in instalment.  Hard especially if people are furloughed.  This is due to HMRC systems not being joined up. 

No - it's due to you not completing self assessment as that is what actually calculates whether additional tax is due or refundable and whether an overpayment of child benefit exists. 

Jeremy535897

There was a let off in respect of penalties for non-disclosure in some cases, but not the tax itself. See:
https://www.moneysavingexpert.com/news/2019/06/child-benefit-fines-wiped-for-6-000-families/

Fitnessisgood

I should have made it clear to people who are judging me on here.  I did ring child benefits office when i started this job to inform them of my earnings and was told that I had the option of carrying on and then complete a self assessment form.  I said I would rather they stopped payment.  By the time HMRC wrote to me and when I rang them upon receipt of letter I was told I should have rand HMRC and not child benefits office as the two systems are different and don’t ‘talk to each other’ - their words nor mine.  I sent in an appeal letter but apparently they ‘lost’ that too.  I got fed up in the end, hence I agreed to instalmental payments.  

kaMelo

So you actually knew you weren't entitled as you'd rather they stopped the payments?

sharpe106

Why did you not put the money to the side?

unholyangel

The only reason you're having to pay back now what you received years ago is because you never declared and paid it when it should have been paid. 

Should we just write off all tax owed because it wasn't paid when it should have been? 

Unfortunately ignorance is no excuse when it comes to tax. It will remain your liability regardless of how much you know/understand of it.