Will I be notified if I have to pay back Child Benefit?

[Deleted User]

Hi all

A few years ago, I unexpectedly earned £62k and got a letter telling me I had to pay back all my child benefit. My wife has regularly been earning over £50k for the past couple years but hasn't got a letter telling her to do a self assessment or pay back part of the child benefit.

Do HMRC reach out if you do? Or just adjust your taxes automatically? This year, we'll both probably go over £60k. We put the child benefit to a side at the moment. 

daveyjp

HMRC won't flag this as the UK has self assessment for tax returns.

As soon as you become aware your tax circumstances have changed you need to do a return.

If this isn't done HMRC are likely to present you a bill.  Doing a return at least means you know what the correct figures should be.

[Deleted User]

daveyjp said:

HMRC won't flag this as the UK has self assessment for tax returns.

As soon as you become aware your tax circumstances have changed you need to do a return.

If this isn't done HMRC are likely to present you a bill.  Doing a return at least means you know what the correct figures should be.

Do you get informed when you have to do a self assessment? I remember getting that letter, but none has ever come through for my wife. 

daveyjp

Deleted_User said:

daveyjp said:

HMRC won't flag this as the UK has self assessment for tax returns.

As soon as you become aware your tax circumstances have changed you need to do a return.

If this isn't done HMRC are likely to present you a bill.  Doing a return at least means you know what the correct figures should be.

Do you get informed when you have to do a self assessment? I remember getting that letter, but none has ever come through for my wife. 

See the second point of my post.  HMRC won't tell you.

Dazed_and_C0nfused

HMRC will tell you (your wife).

But if it gets to that stage it's very bad news as not only will she be liable to pay the HICBC and interest for late payment but a penalty will almost certainly be added.

She needs to check her adjusted net income and register for Self Assessment asap if she is liable to pay HICBC.