Overpaying Child Benefit High Income Charge

Belcheee Posts: 16
First Post First Anniversary Combo Breaker
edited 25 October 2023 at 1:29PM in Cutting tax
Hi, my recent payslip included a lot more tax paid than I was expecting. When I looked I discovered my tax code had been changed to include a tax debt of £1200 for this tax year (split over the remaining months of the current tax year).

For background, I pay the High Income Charge on child benefit. I fill in a self assessment after tax year A, submit it during tax year B, and pay the balance via PAYE in tax year C. For example the charge I received due to my 2019/20 pay, I paid back monthly during tax year 2021/22.
This backdated charge always shows on my tax code letter as "Less Adjustment for tax you owe (earlier year)".

This months mid-year tax code change however (for this current tax year) includes the above but also shows a "Less Child Benefit Charge" line which has never appeared before. This is what has created the £1200 tax debt for this tax year I believe.
On the notes for that line, it says:
"This is a deduction to recover the Child Benefit you or your partner receives as we expect your income to exceed £50000."

It appears to me that, as well as paying the backdated charge (currently for the 2021/22 tax year) they are now trying to claw back the tax I owe for the current year, even though that would eventually be covered in the 2025/26 tax year (as I fill in the self assessment for 2023/24 around October 2024, and it gets added to the next tax year starting 2025).

I filled in the self assessment a couple of weeks ago for the tax year just gone (2022/23), but I haven't received any notice yet that it will be included in my 2024/25 PAYE tax.

I phoned HMRC and they tried to explain that I had not been paying the charge for the first 6 months of this tax year, but I already have an adjusted tax code to cover the 2021/22 charge).

Any advice appreciated, if I've explained this clearly!



  • There are two questions near the end of the tax return which ask about,

    1.  How tax owed for the return year (2022-23 in your example) should be paid

    2.  Do you want the current year's code (2023-24)  amending to pay more for this year and have a smaller liability when you file your 2023-24 return.

    You need to check how you answered the second of those (not necessarily second on the return though!).

    If you made a mistake then just tell HMRC to amend your current tax code.  What new deduction(s) have been included?
  • Belcheee
    Belcheee Posts: 16
    First Post First Anniversary Combo Breaker
    Lightbulb moment!

    I just re-read the second question that you mentioned:
    "If you owe tax on savings, casual earnings and/or the High Income Child Benefit Charge for the 2023–24 tax year, we’ll try to collect it through your wages or pension by adjusting your 2023–24 tax code.
    If you do not want us to do this, put ‘X’ in the box"
    I didn't put an X in the box...

    This and the previous question that you mentioned, I find very confusing on the SA form. I had to re-read several times and they both ask the question in a slightly different way.

    Thanks for highlighting this. I was aware of the questions and did check them earlier, but re-reading carefully I realised my mistake. Now to try and get through to HMRC.


  • mondeotd
    mondeotd Posts: 49
    Name Dropper First Anniversary First Post Combo Breaker
    edited 25 October 2023 at 10:44PM
    Easily done. I did the same on my first SA.
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