Back dated tax bill for child health benefit

festivalabbie

MattMattMattUK said:

festivalabbie said:

Thanks so much for the info! Sorry I've not had chance to thank you sooner. I'll look through it all as soon as I can.

I was really hoping someone would say "no, they can't make you pay that huge bill going back all those years - the tax man with never be that unfair" but sadly not!! Looks like I was being very naive / too optimistic!

Thanks!

Why would it be unfair to allow you to claim money to which you were not entitled, then keep it? 

I can see your point - but we claimed it as every parent claimed it - indeed, there was no option to not claim it as you needed it to get an NI number etc.. When we started claiming it there was nothing to say we would ever be taxed on it, so it came as quite a shock to hear that we would now be taxed on it, and that the tax would be back dated so far. I think that's the bit I feel is unfair. If we'd known we would have to pay it back, we would have kept a pot of cash aside for it, so to now get a bill for £15K is a bi of a shock!

molerat

The problem is that in law it is you that is responsible for ensuring your tax affairs are correct, much the same as driving a car.

festivalabbie

molerat said:

The problem is that in law it is you that is responsible for ensuring your tax affairs are correct, much the same as driving a car.

Yep, you're quite right. Ignorance is no excuse, I know. It wasn't an issue when we first started claiming it, and the changes to the tax laws went unnoticed by us. Like I said earlier, I suppose I was being very optimistic!

[Deleted User]

festivalabbie said:

molerat said:

The problem is that in law it is you that is responsible for ensuring your tax affairs are correct, much the same as driving a car.

Yep, you're quite right. Ignorance is no excuse, I know. It wasn't an issue when we first started claiming it, and the changes to the tax laws went unnoticed by us. Like I said earlier, I suppose I was being very optimistic!

Have you considered negotiating with HMRC with regard to a payment plan?

sheramber

The introduction of the charge was announced in the budget at the time. It was advertised in papers and a mail shot  was sent out to those claiming the benefit. 

festivalabbie

[Deleted User] said:

festivalabbie said:

molerat said:

The problem is that in law it is you that is responsible for ensuring your tax affairs are correct, much the same as driving a car.

Yep, you're quite right. Ignorance is no excuse, I know. It wasn't an issue when we first started claiming it, and the changes to the tax laws went unnoticed by us. Like I said earlier, I suppose I was being very optimistic!

Have you considered negotiating with HMRC with regard to a payment plan?

Yes, looks like that's our way forward now. Thanks

[Deleted User]

festivalabbie said:

[Deleted User] said:

festivalabbie said:

molerat said:

The problem is that in law it is you that is responsible for ensuring your tax affairs are correct, much the same as driving a car.

Yep, you're quite right. Ignorance is no excuse, I know. It wasn't an issue when we first started claiming it, and the changes to the tax laws went unnoticed by us. Like I said earlier, I suppose I was being very optimistic!

Have you considered negotiating with HMRC with regard to a payment plan?

Yes, looks like that's our way forward now. Thanks

For a one off bill like this they are generally sympathetic. Expect a lot of questions regarding your savings, ability to borrow from relatives, remortgaging etc Stick to your guns!

Jeremy535897

If you can do it online I don't think you are grilled:
https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments

[Deleted User]

Jeremy535897 said:

If you can do it online I don't think you are grilled:
https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments

That’s very useful indeed. Certainly wasn’t around a few years ago! 

festivalabbie

[Deleted User] said:

Jeremy535897 said:

If you can do it online I don't think you are grilled:
https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments

That’s very useful indeed. Certainly wasn’t around a few years ago! 

Brilliant info, thanks very much guys!