High Income Child Benefit Charge

Alocin86

Hi

My Husband and I don't discuss our incomes.  We have always had separate accounts and both pay the bills we're responsible for and that's about as far as it goes.  

We got ourselves into quite a bit of debt over the years, and covid sent us further under, and have been working hard to clear it.  We're now at a point where we can start planning to save a deposit to buy a home - we've been renting for the last 14 years.

Last night we were going over our finances to work out an affordable price range for a house and how much deposit we need to save.  This was when my husband told me he had exceeded the high income cap for child benefit - it turns out he's exceeded it for the last 5 years at least and I had no idea. 

He didn't realise there was a cap for child benefit and forgot I was even claiming it so he genuinely didn't know he had to tell me.  

I called child benefit this morning but they told me my husband is the the one who needs to call self assessment to sort it.

I'm aware we will need to pay it back but I'm worried that they're going to send us a huge bill and expect us to pay it straight away or in a short period of time.

I wouldn't mind but it's not like we live an extravagant lifestyle - neither of us drink or smoke, we rarely go out or on holiday. In addition to the general cost of living going up and our rent being raised, I really don't feel like we're a "higher income" household.  There have been weeks where we cam barely even afford to buy food.  This is why it didn't occur to me to even question his earnings.

My husband's earnings are over the limit due to him working ridiculous amounts of overtime to be able to pay our debts off and get straight.  

Has anyone been in a similar position? Are we also going to be fined for not realising or would us declaring it before we're "caught" go in our favour?  Are they reasonable about making payments by installments? I'm so worried 😟 

HillStreetBlues

https://www.gov.uk/repay-child-benefit-overpayments

You’ll usually have to pay back an overpayment in a lump sum.

Maybe they would stagger payments if you can't afford to pay it straight away.
I believe there could be a penalty, Telling them before they find out themselves would be a big plus.  

Dazed_and_C0nfused

HillStreetBlues said:

https://www.gov.uk/repay-child-benefit-overpayments

You’ll usually have to pay back an overpayment in a lump sum.

Maybe they would stagger payments if you can't afford to pay it straight away.
I believe there could be a penalty, Telling them before they find out themselves would be a big plus.  

^^^ This all day long.

Coming forward himself will mitigate any penalties which could apply.

And he can potentially delay paying some of it by filing his 2022-23 return by no later than 30 December 2023. 

If the amount owed for 2022-23 is less than £3000 and he is still earning good money then it can be collected via an adjustment to his 2024-25 tax code, effectively an interest free loan from HMRC.