Higher child benefit charge.

nameless121

Hi guy.

 I am an employee who is having a nightmare with the tax office.

In 2022 to 2023 I have to pay the higher child benefit charge. My calculations are. Wage 52958.00 minus pension contributions of 1695.00. Leaves 51263.00. The higher tax charge being 1% for every £100 over £50000 means I have to pay 12.63% of 2636.00 which is £332.92.

The tax office is saying I owe £544.46 Fines I had were removed.  There is no over or under payment from any previous years. They did remove my married tax allowance since I’m over the 50k mark. I have spent many hours on hold, and I am getting contradicting information from the advisers. Today. After 1 hour 10 on hold then 35 minutes, one hung up on me. I have no adviser or anyone who can help with this.

I also have a second problem with them. I got an email in June last year saying I have not paid enough tax for the year 2022 to 2023. They changed my tax code from 1389m to 1237l.

Every tax calculator I go on says the tax I paid is correct.

Wage                                              52,958

Pension contributions,                1694.70 per month 141.225

Tax paid                                        8083.96

Ni paid                                         4928.23

They say I should have paid 8592. I said what about pension contributions. They say already taken into consideration.

Are my figures correct? Are the tax calculators accurate? I tried Money saving experts one. And listen to the taxman, whose figures are almost identical. I have had one adviser say the extra tax I have to pay is for the child benefit charge. I said, why am I getting billed still? I’m just going round in circles.

I have no problem paying the tax I owe. It’s just getting the correct figures.

Dazed_and_C0nfused

nameless121 said:

Hi guy.

 I am an employee who is having a nightmare with the tax office.

In 2022 to 2023 I have to pay the higher child benefit charge. My calculations are. Wage 52958.00 minus pension contributions of 1695.00. Leaves 51263.00. The higher tax charge being 1% for every £100 over £50000 means I have to pay 12.63% of 2636.00 which is £332.92.

The tax office is saying I owe £544.46 Fines I had were removed.  There is no over or under payment from any previous years. They did remove my married tax allowance since I’m over the 50k mark. I have spent many hours on hold, and I am getting contradicting information from the advisers. Today. After 1 hour 10 on hold then 35 minutes, one hung up on me. I have no adviser or anyone who can help with this.

I also have a second problem with them. I got an email in June last year saying I have not paid enough tax for the year 2022 to 2023. They changed my tax code from 1389m to 1237l.

Every tax calculator I go on says the tax I paid is correct.

Wage                                              52,958

Pension contributions,                1694.70 per month 141.225

Tax paid                                        8083.96

Ni paid                                         4928.23

They say I should have paid 8592. I said what about pension contributions. They say already taken into consideration.

Are my figures correct? Are the tax calculators accurate? I tried Money saving experts one. And listen to the taxman, whose figures are almost identical. I have had one adviser say the extra tax I have to pay is for the child benefit charge. I said, why am I getting billed still? I’m just going round in circles.

I have no problem paying the tax I owe. It’s just getting the correct figures.

The first thing you need to explain is which method is used to make the pension contributions as you can only take into account certain ones when it comes to HICBC.

Did you get money into the pension using,
Net pay
Relief at source (RAS)
Salary sacrifice

Also, you can never have a 12.63% HICBC liability.  It is in 1% increments only so if your adjusted net income is £51,263 then the HICBC would be 12%, not 12.63%.

Don't forget Self Assessment determines your overall liability unfortunately the year in question so losing Marriage Allowance could easily add anywhere from £250-500 to your liability.

Also, your figures don't make sense.  

The tax office is saying I owe £544.46
Tax paid 8083.96
They say I should have paid 8592

The difference between £8083.96 and £8592 is £508.04

nameless121

The pension contributions are for one my employer had to set up. It’s taken directly from my wage. 5% from me. My employer pays 3%.

I think the tax calculators are using my pension contributions to calculate my tax but I think the Inland Revenue are not.

The tax office saying I owe £544.46 because they are adding interest daily.

Ferro

nameless121 said:

The pension contributions are for one my employer had to set up. It’s taken directly from my wage. 5% from me. My employer pays 3%.

I think the tax calculators are using my pension contributions to calculate my tax but I think the Inland Revenue are not.

The tax office saying I owe £544.46 because they are adding interest daily.

What was the gross pay shown on your P60? 

£52958 or £51263 ?

It should be noted that £52958 less 3% (not 5% as you have stated) is £51263. 

What was the underpayment amount for 2022/23?