HIBC - During year of earning transition

Jreid1611

I was claiming child benefit earning around £50k year. However, at the end of year I got a significant bonus which took me well over the £50k.  I then stopped my child benefit. 

I am now expected to pay back all my child benefit for that year because my P60 shows above £60k for the year.  I find this very infuriating as for the majority of the year i was on 50k/year

Does anyone have any similar experience of this>

Rather aggrieved to pay back benefits when i was just on £50k/year when receiving them

Thanks

Dazed_and_C0nfused

Jreid1611 said:

I was claiming child benefit earning around £50k year. However, at the end of year I got a significant bonus which took me well over the £50k.  I then stopped my child benefit. 

I am now expected to pay back all my child benefit for that year because my P60 shows above £60k for the year.  I find this very infuriating as for the majority of the year i was on 50k/year

Does anyone have any similar experience of this>

Rather aggrieved to pay back benefits when i was just on £50k/year when receiving them

Thanks

I think you have got confused somewhere along the line.

HICBC is based on the facts for each tax year.  So if your P60 correctly shows £60k+ because you received a bonus during that year then you could well be liable to HICBC.

It all depends on what other taxable income you have along with any deductions relevant for your adjusted net income calculation (which is what HICBC is based on).  Usually relief at source pension contributions or GIft Aid.

Jreid1611

I am due it all even after the relevant deductions

Just doesn't seem right I need to pay back entitled benefits i received when earning £50k.year  

Alice_Holt

 "I then stopped my child benefit." 

Make sure you haven't ended your partners NI contributions to their SP by stopping CB.

Veteransaver

Yes unfortunately if your p60 shows income of £60k or more for the year you will probably need to pay it back.  It's a ridiculous policy imo and catches a lot of people out. Especially if it's a bonus which has taken you over the £50k as it means you have stupid high marginal tax rate. Eg you may only net 40% or less of that bonus!
If you have paid into pension though in that tax year (would have to be a private pension though as if it was a work pension it won't be included on your P60 figure anyway) and declare it on a self assessment return you can bring your taxable income down. Or if you have other allowable expenses as part of your self assessment return

Maybe not wise to stop CB completely though. Note you can do certain things like salary sacrifice or pay AVCs into your work pension to reduce your P60 figure too. But too late for the tax year just gone I'm afraid. But you can still avoid it this tax year if you pay enough into a pension or some other things like company share scheme, company car via salary sacrifice etc