High Income Child Benefit Charge

Dazed_and_C0nfused

borris78 said:

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.

Changes are afoot

https://www.theguardian.com/money/2023/jul/19/child-benefit-parents-hmrc-fines-self-assessment-tax-form

borris78

Dazed_and_C0nfused said:

Changes are afoot

https://www.theguardian.com/money/2023/jul/19/child-benefit-parents-hmrc-fines-self-assessment-tax-form

I've seen this and I'm still not clear what they will be doing. It says that parents will be able to pay the tax back through the tax code. Well, this is what most of us do already. If HMRC isn't asking for a self-assessment to be completed then how will they know who should pay the tax and who shouldn't? Unless they will be cross-referencing child benefit and PAYE records with people at the same address?

Dazed_and_C0nfused

borris78 said:

Dazed_and_C0nfused said:

Changes are afoot

https://www.theguardian.com/money/2023/jul/19/child-benefit-parents-hmrc-fines-self-assessment-tax-form

I've seen this and I'm still not clear what they will be doing. It says that parents will be able to pay the tax back through the tax code. Well, this is what most of us do already. If HMRC isn't asking for a self-assessment to be completed then how will they know who should pay the tax and who shouldn't? Unless they will be cross-referencing child benefit and PAYE records with people at the same address?

I don't think it's "paying it back" that is planned, more than you can pay more tax during the year so that when the HICBC is calculated you will already paid some (or all) of the extra tax needed and that can be achieved without the need for a tax return.

sheramber

borris78 said:

Dazed_and_C0nfused said:

Changes are afoot

https://www.theguardian.com/money/2023/jul/19/child-benefit-parents-hmrc-fines-self-assessment-tax-form

I've seen this and I'm still not clear what they will be doing. It says that parents will be able to pay the tax back through the tax code. Well, this is what most of us do already. If HMRC isn't asking for a self-assessment to be completed then how will they know who should pay the tax and who shouldn't? Unless they will be cross-referencing child benefit and PAYE records with people at the same address?

They already do cross reference. 

How do you think HMRC find out about cases where the recipient has not notified them?