HICB can my partner reclaim the percentage if earnings below £60K

crazybass_uk

Hi, 

Last year I found out something that i never knew about i.e. HICBT. During Covid as being key worker i done a lot of overtime and earned over the £60K threshold and got the letter saying you owe us money which i never knew about but paid anyway.

We decided that as the money was having to be paid back that we would suspend the payments my partner was getting paid. so it looks like this tax year I will be earning between the 50 and 60K threshold. I remember at the time my partner was on the phone to them and i am sure they said that you could restart them and claim any backdated for the tax year. 

So the question is can she claim back the difference that would have been paid had she kept receiving the payments. I hope this makes sense lol

Regards

MattMattMattUK

crazybass_uk said:

Hi, 

Last year I found out something that i never knew about i.e. HICBT. During Covid as being key worker i done a lot of overtime and earned over the £60K threshold and got the letter saying you owe us money which i never knew about but paid anyway.

We decided that as the money was having to be paid back that we would suspend the payments my partner was getting paid. so it looks like this tax year I will be earning between the 50 and 60K threshold. I remember at the time my partner was on the phone to them and i am sure they said that you could restart them and claim any backdated for the tax year. 

So the question is can she claim back the difference that would have been paid had she kept receiving the payments. I hope this makes sense lol

Regards

Child benefit can be backdated a maximum of three months so your partner could make a claim for that. If you suspect that your income could be below £60k in any one year you are better off claiming Child Benefit and the repaying the amount required at the year end, if you are worried about the cost then just put the Child Benefit into savings every month and then at the end of the tax year spend whatever is left after repaying the HICBC.
https://www.gov.uk/child-benefit-tax-charge

Icequeen1

MattMattMattUK said:

crazybass_uk said:

Hi, 

Last year I found out something that i never knew about i.e. HICBT. During Covid as being key worker i done a lot of overtime and earned over the £60K threshold and got the letter saying you owe us money which i never knew about but paid anyway.

We decided that as the money was having to be paid back that we would suspend the payments my partner was getting paid. so it looks like this tax year I will be earning between the 50 and 60K threshold. I remember at the time my partner was on the phone to them and i am sure they said that you could restart them and claim any backdated for the tax year. 

So the question is can she claim back the difference that would have been paid had she kept receiving the payments. I hope this makes sense lol

Regards

Child benefit can be backdated a maximum of three months so your partner could make a claim for that. If you suspect that your income could be below £60k in any one year you are better off claiming Child Benefit and the repaying the amount required at the year end, if you are worried about the cost then just put the Child Benefit into savings every month and then at the end of the tax year spend whatever is left after repaying the HICBC.
https://www.gov.uk/child-benefit-tax-charge

I think this answer is confusing the 3 month backdating for new child benefit claims and the 2 year period in which you can revoke an election not to receive payments - see https://www.gov.uk/hmrc-internal-manuals/child-benefit-technical-manual/cbtm03130 

OP - if you had a child benefit claim and elected not to receive payments, see the guidance link i've just posted. If you completely cancelled a child benefit claim and needed to claim as a new claim - then it can only be backdated 3 months