High Income Tax Charge

[Deleted User]

I moved in with my partner a little over 2 years ago with my son (from a previous relationship). Today, my partner received a letter from HMRC asking HIM to do a self assessment to determine if HE needs to “pay back” the child benefits i have received. 

What i cannot seem to fathom is WHY?? Why is he liable for paying MY child benefits back when my son is not his… i can kind of understand the “High Income” malarkey but what i don’t agree with is the fact he is now going to have to pay all of the benefits i have received since i moved in and my monthly child benefits payment is now going to stop…

Personal circumstances do not get taken into consideration, my partner has 2 children from a previous marriage which he pays £500 a month in child maintenance and now he is being penalised for my child… its not fair and completely wrong.

I am grateful to have a partner who loves us but something like this could end a relationship!! We both work over 40+ hours each a week to continue to provide the best life for our children and this happens…

TheSpectator

Why? Because the Government made it based on the highest earner in the household regardless of parentage. Whether you agree or not is academic.

The threshold has increased to £60,000 this tax year and it's not a cliff edge so unless he is earning significantly more than the threshold you may not have tp pay it all back.

zagfles

It's the screwed up way the tax/benefits system works unfortunately. If he earns over £60k he could look at increasing pension contributions to lower his "adjusted net income"

marcia_

 You are a couple and your should be supporting each other including financially. It matters not that they are the childs natural parent but they are a step parent who is is in a live in relationship with the childs parent.

 If you are serious saying this could end your relationship I would be looking at how strong and stable the relationship was prior to this. 

[Deleted User]

marcia_ said:

 You are a couple and your should be supporting each other including financially. It matters not that they are the childs natural parent but they are a step parent who is is in a live in relationship with the childs parent.

 If you are serious saying this could end your relationship I would be looking at how strong and stable the relationship was prior to this. 

I appreciate what you are saying Marcia, i too am a step parent to his two children who we also provide for. I guess the point i am trying to make is why should he be the one to be paying back the payments that i was receiving. Just because he earns more… yes we are under the same household but we equally have other responsibilities that were in force prior to our relationship starting. 

I didn’t say it would end “our” relationship but could for others! Especially when they are only just “reaching” out to us after 2 years of being registered under the same household…. Sadly, this whole situation is not something either of us were aware of and if we had been aware, i would have cancelled the child benefit when i moved in! Yes, you could call me ignorant to the situation but at the same time, its not something you think about when you first start claiming it in a past relationship where you were under this so called threshold… 

poppy12345

This forum is about help people with benefits entitlement and not about benefits policy. There’s a sticky at the top of the forum. https://forums.moneysavingexpert.com/discussion/365935/its-about-helping-people-get-their-entitlement-not-about-benefits-policy#latest

If you’re not happy with the law then contact your local MP.

zagfles

poppy12345 said:

This forum is about help people with benefits entitlement and not about benefits policy. There’s a sticky at the top of the forum. https://forums.moneysavingexpert.com/discussion/365935/its-about-helping-people-get-their-entitlement-not-about-benefits-policy#latest

If you’re not happy with the law then contact your local MP.

Likely be a waste of ink, or electrons. Would just get some generic political bull in reply, tough choices, blame the other lot etc. Policy been in place for over a decade and already been watered down. 

Much better plan is to understand the system so you can get the best out of it. For instance as well as pension contributions mentioned above, did you know he could get tax relief on gift aid, and you can gift aid all sorts of stuff, even fun stuff you were doing anyway. 

For instance a day out to the zoo, National Trust & English Heritage places, even stuff like model villages, national space centre etc. There are all kinds of places you might fancy a day out with the kids where you can gift aid admission or membership, and as well as tax relief, it'll reduce his "adjusted net income" which will mean paying back less child ben if he earns between 60-80k. If he has to do a tax return anyway he may as well get the best out of it. 

DullGreyGuy

[Deleted User] said:

marcia_ said:

 You are a couple and your should be supporting each other including financially. It matters not that they are the childs natural parent but they are a step parent who is is in a live in relationship with the childs parent.

 If you are serious saying this could end your relationship I would be looking at how strong and stable the relationship was prior to this. 

I appreciate what you are saying Marcia, i too am a step parent to his two children who we also provide for. I guess the point i am trying to make is why should he be the one to be paying back the payments that i was receiving. Just because he earns more… yes we are under the same household but we equally have other responsibilities that were in force prior to our relationship starting. 

I didn’t say it would end “our” relationship but could for others! Especially when they are only just “reaching” out to us after 2 years of being registered under the same household…. Sadly, this whole situation is not something either of us were aware of and if we had been aware, i would have cancelled the child benefit when i moved in! Yes, you could call me ignorant to the situation but at the same time, its not something you think about when you first start claiming it in a past relationship where you were under this so called threshold… 

When coming up with new rules you have to come up with a way to implement them that will work in all scenarios and is the most cost effective way of doing it.  It makes sense that the highest earner is the one that has to repay because it could be they earn £300,000 a year whereas the recipient of child benefit could have no income or just a hobby that makes a couple hundred a year such and so no funds to repay it. 

As mentioned previously, the idea is that those in a serious relationship support each other and so whilst it may intitially be taken from the one with the highest income that doesn't prevent the couple from rebalancing it afterwards. 

sheramber

Although the charge is made on your  partner due to his higher income  you  could pay it.