High Income Child Benefit Charge

TheAble

Dazed_and_C0nfused said:

TheAble said:

[Deleted User] said:

BoGoF said:

The rants board is here - https://forums.moneysavingexpert.com/categories/praise-vent-warnings

Look at it from people with no kids - why should child benefit exist in the first place

BoGof - take yourself off to the rants board then please!!

This is a cutting tax board. The HICBC is an unfair tax charge.

And the government has just announced a uplift of the threshold.

Wow, I will eat my hat then

And a big thanks to Martin Lewis and the team.

It's still "unfair" though. The limits have changed but the principle has not. Two earners on £60k each keep the whole lot; a one-income household of £80k gets nothing.

But that's not the whole story.

Plenty of one income households earning £80k get to keep 100% of the Child Benefit.

It's each person's choice how much they want shove into a pension and plenty make hay pension wise with such high marginal rates in the HICBC band.

Of course - but it would be nice not to *have* to do that. There comes a point where additional contributions to pension may save you tax now but aren't necessarily going to significantly improve your quality of life when you retire.

eltisley98

xylophone said:

I have no expectation to receive state pension when I'm retired;

Why do you think this?

The pension age keeps rising and it will be 71-72 when I am due to get my SP. Given my family health history I have no confidence to live that long. Also by then SP will perhaps have become means tested, which means that I won't get it. For these reasons, I don't have it in my retirement plan.

mr._prude

If you pay say 2k of income tax at 40% in a tax year.

Would you be limited to a tax rebate on tax returns of 2k?

i.e. 8k * 1.25  =10k * 0.2 = 2k

6k SIPP

2k gift aided to charity

Dazed_and_C0nfused

mr._prude said:

If you pay say 2k of income tax at 40% in a tax year.

Would you be limited to a tax rebate on tax returns of 2k?

i.e. 8k * 1.25  =10k * 0.2 = 2k

6k SIPP

2k gift aided to charity

The higher rate tax relief is limited by the amount of higher rate tax paid yes.

Are the £6k and £2k the net contribution/donation or the gross amounts?

mr._prude

SIPP 6k net = 7.5k gross (+25%)

Gift Aid 2k net = 2.5k gross (+25%)

Total 8k net = Total 10k gross

Tax rebate = 2k (20% of 10k)

Provided at least 2k was payed at 40% via PAYE over tax year?

Dazed_and_C0nfused

mr._prude said:

6k and 2k would be net, grossed up to 10k

Then yes, the higher rate tax relief would be limited to £1,000.

Without the RAS pension contribution and Gift Aid donation you would have £5,000 taxed at 40% = £2,000

With the RAS pension contribution and Gift Aid donation that £5,000 would be taxed at 20% = £1,000.

So a £1,000 personal tax saving.

If you pay say 2k of income tax at 40% in a tax year.

edthegent

Not sure if this is part of the same issue: I fell foul of this this last tax year as someone who qualified for the first time. Filled the self assessment and submitted it before end of Jan - so far so good. 

Last week I received a letter with the amount I owe (plus interest - not sure how this is warranted given it is their error) ok - can deal with that. 

This morning I have received a letter from HMRC telling me that I am being fined for not submitting a tax return for year to 5 April 2022. 

I have tried contacting them via tehir phone number, to be fobbed off by an automated text message and the call terminating. 

This is a hugely frustrating experience for someone with neurodiverse issues - is anyone aware of an easy way to speak to a human being? The number I hvae been trying is 0300 200 3310.

[Deleted User]

edthegent said:

Not sure if this is part of the same issue: I fell foul of this this last tax year as someone who qualified for the first time. Filled the self assessment and submitted it before end of Jan - so far so good. 

Last week I received a letter with the amount I owe (plus interest - not sure how this is warranted given it is their error) ok - can deal with that. 

This morning I have received a letter from HMRC telling me that I am being fined for not submitting a tax return for year to 5 April 2022. 

I have tried contacting them via tehir phone number, to be fobbed off by an automated text message and the call terminating. 

This is a hugely frustrating experience for someone with neurodiverse issues - is anyone aware of an easy way to speak to a human being? The number I hvae been trying is 0300 200 3310.

That’s the number - try at 7.59 am. 

However, given today’s news that HMRC are to close their helpline permanently between 8th April and 30th September every year you may need to get your skates on. 

BoGoF

edthegent said:

Not sure if this is part of the same issue: I fell foul of this this last tax year as someone who qualified for the first time. Filled the self assessment and submitted it before end of Jan - so far so good. 

Last week I received a letter with the amount I owe (plus interest - not sure how this is warranted given it is their error) ok - can deal with that. 

This morning I have received a letter from HMRC telling me that I am being fined for not submitting a tax return for year to 5 April 2022. 

I have tried contacting them via tehir phone number, to be fobbed off by an automated text message and the call terminating. 

This is a hugely frustrating experience for someone with neurodiverse issues - is anyone aware of an easy way to speak to a human being? The number I hvae been trying is 0300 200 3310.

How was it HMRC error? You do realise Self Assessment means you are responsible for not just submitting the return but also paying the tax due by 31 January? Hence the interest.

borris78

BoGoF said:

How was it HMRC error? You do realise Self Assessment means you are responsible for not just submitting the return but also paying the tax due by 31 January? Hence the interest.

I think a bit of empathy is warranted here. This stupid child benefit tax has forced many people who are on PAYE into completing a self-assessment tax return, which is something they've never done before and is usually left to an accountant of someone self-employed. The language used in the self-assessment is pretty much gobbledy-goop to anyone new to this and who is not an accountant. Some of the later questions about how the tax is paid back is also quite confusing and can lead someone into selecting the wrong option - for example, the tax doesn't have to be paid in one lump by 31 January and can instead be deducted monthly from pay, and even then the language about whether it's this or next tax year is confusing. I've been doing this for 10 years and still have to read it carefully, as it feels like they're trying to trip me up. I think it's bang out of order HMRC forcing people who are just in receipt of CB to do this.