I owe child benefit for 2019-20 tax year (HICBC) cannot afford to pay by 31 Jan due to redundancy

ManchegoMan

Hello,
I have been made redundant recently and decided to complete my Self Assessment for 2019-20. As expected I owe £1200 back for the HICBC charge. I normally have money to pay this back by the January deadline, but this year I was made redundant just before COVID. I'm looking for anyone's advice who may have been able to defer payment or add it to the following tax year via an adjusted tax code or something? Is there any worth in contacting HMRC and explaining the situation or will they simply say I should have kept safe the child benefit money. I do regret not doing this and have slapped my wrists on many occassions but its easy to forget to exclude my income from my monthly budgeting and since redundancy I've been dipping into what little savings I had to make up the shortfall at the end of each month.
Any advice welcome. Thanks, Steve.

Jeremy535897

On page TR6 of SA100 the default option, where your total underpayment is less than £3,000 for 2019/20, is to have it adjusted in your 2021/22 tax code (but you must file online by 30 December 2020). There is also an option regarding 2020/21 HICBC to look at.

01afraser4

Jeremy535897 said:

On page TR6 of SA100 the default option, where your total underpayment is less than £3,000 for 2019/20, is to have it adjusted in your 2021/22 tax code (but you must file online by 30 December 2020). There is also an option regarding 2020/21 HICBC to look at.

I would assume including it in the tax code would only be possible if there is a source of income to deduct the additional tax from? (OP made redundant so would depend on their sources of income).

I would contact HMRC and make them aware. Particularly in the current climate, with the issues Covid have been causing I think they will look at this sympathetically and engage with you to arrive at a reasonable solution.

Jeremy535897

01afraser4 said:

Jeremy535897 said:

On page TR6 of SA100 the default option, where your total underpayment is less than £3,000 for 2019/20, is to have it adjusted in your 2021/22 tax code (but you must file online by 30 December 2020). There is also an option regarding 2020/21 HICBC to look at.

I would assume including it in the tax code would only be possible if there is a source of income to deduct the additional tax from? (OP made redundant so would depend on their sources of income).

I would contact HMRC and make them aware. Particularly in the current climate, with the issues Covid have been causing I think they will look at this sympathetically and engage with you to arrive at a reasonable solution.

I would expect that anyone made redundant in October 2020 who earned enough to pay HICBC would get a job in sufficient time before April 2022 to have a £1,200 tax bill recovered from the 2021/22 code. If not, I suspect it is the least of OP's worries.

sheramber

You can ask for an arrangement to pay .

01afraser4

Jeremy535897 said:

01afraser4 said:

Jeremy535897 said:

On page TR6 of SA100 the default option, where your total underpayment is less than £3,000 for 2019/20, is to have it adjusted in your 2021/22 tax code (but you must file online by 30 December 2020). There is also an option regarding 2020/21 HICBC to look at.

I would assume including it in the tax code would only be possible if there is a source of income to deduct the additional tax from? (OP made redundant so would depend on their sources of income).

I would contact HMRC and make them aware. Particularly in the current climate, with the issues Covid have been causing I think they will look at this sympathetically and engage with you to arrive at a reasonable solution.

I would expect that anyone made redundant in October 2020 who earned enough to pay HICBC would get a job in sufficient time before April 2022 to have a £1,200 tax bill recovered from the 2021/22 code. If not, I suspect it is the least of OP's worries.

If I am reading it correctly, they were made redundant pre-covid, so in essence, January/February time.

Jeremy535897

01afraser4 said:

Jeremy535897 said:

01afraser4 said:

Jeremy535897 said:

On page TR6 of SA100 the default option, where your total underpayment is less than £3,000 for 2019/20, is to have it adjusted in your 2021/22 tax code (but you must file online by 30 December 2020). There is also an option regarding 2020/21 HICBC to look at.

I would assume including it in the tax code would only be possible if there is a source of income to deduct the additional tax from? (OP made redundant so would depend on their sources of income).

I would contact HMRC and make them aware. Particularly in the current climate, with the issues Covid have been causing I think they will look at this sympathetically and engage with you to arrive at a reasonable solution.

I would expect that anyone made redundant in October 2020 who earned enough to pay HICBC would get a job in sufficient time before April 2022 to have a £1,200 tax bill recovered from the 2021/22 code. If not, I suspect it is the least of OP's worries.

If I am reading it correctly, they were made redundant pre-covid, so in essence, January/February time.

Yes, it is a bit confusing, because I wouldn't describe that as "recently" (line 1 of OP). I would still just leave the box unchecked, though, because it is a reasonable assumption at this time that a new job will be taken in sufficient time (the OP asked whether this was a possibility, so must have in mind getting another job).

[Deleted User]

Interesting to see the HMRC (bad government approaches to what, in my view, is going to be a common occurrence - taxpayers unable to pay their tax on 31st January. That is less than fifteen weeks away.

On that date the self-employed will be required to settle their tax bills for 2019/20, obviously on profits all realised pre-Covid. Many have also taken the opportunity not to pay the second payment on account for 2019/20 on 31 July. The full liability for 2019/20, less the first payment on account made in January 2020, plus a payment on account for 2020/21 is, therefore, due on 31st January 2021 in a financial year where there has been, in many cases, substantially reduced income and based on a ‘normal year’. I know, from chatting to ex-colleagues, the accountancy profession is already inundated with queries on this. Goodness knows what is going to happen.