Child Benefit claim for part of year with changes in employment

rborob

Hi All, 

I'm hoping someone can help?

This is for tax year 21/22

I earned over 50k for the whole tax year so know i have to repay tax on child benefits i claimed, but i stopped the benefits claiming in January (3rd) of 2022.  I then moved jobs and started earning more money.

My confusion is I've been charge a percentage that is based on my whole tax years pay even though i wasn't claiming whilst at my second higher income job.  Is this correct?  if I'd stayed at my original job I'd have had to pay back around £1k, but because i moved jobs I'm being charged £1.3k even though i didn't claim during this employment.

(April 21 - Jan -22)  Claimed benefits whilst employment on 58k
(Jan 22 - April 23) Didn't claim benefits, earned 62k

HMRC calculation for tax (~£1300)
What I think it should be (~£1000)

It feels strange they're using my higher income to work out the percentage, regardless of me working there whilst claiming.

Can anyone help?

Dazed_and_C0nfused

It's your adjusted net income (not taxable income) for the tax year that matters, not a particular period within the tax year.

rborob

Dazed_and_C0nfused said:

It's your adjusted net income (not taxable income) for the tax year that matters, not a particular period within the tax year.

So its right?  I'm assuming then that changing jobs was the worst thing I could have done (tax wise)  based on how they calculate the %?

Dazed_and_C0nfused

rborob said:

Dazed_and_C0nfused said:

It's your adjusted net income (not taxable income) for the tax year that matters, not a particular period within the tax year.

So its right?  I'm assuming then that changing jobs was the worst thing I could have done (tax wise)  based on how they calculate the %?

Wouldn't you be worse off overall though?

rborob

Dazed_and_C0nfused said:

rborob said:

Dazed_and_C0nfused said:

It's your adjusted net income (not taxable income) for the tax year that matters, not a particular period within the tax year.

So its right?  I'm assuming then that changing jobs was the worst thing I could have done (tax wise)  based on how they calculate the %?

Wouldn't you be worse off overall though?

Post April 23, yes, but they've effectively taken back the pay rise i got Jan-April to fund it. I appreciate you taking the time to reply though...just didn't want to pay the higher amount if it was wrong!

Dazed_and_C0nfused

I meant if you hadn't taken the extra pay then you would have been worse off.

You are only paying so much tax, NI and HICBC, you get the extra net pay after all of that.