Child benefit repayments - high income charge as a single parent

sky_rat

This is probably a long shot but very frustrating none the less....

I have been a resident single parent for the last few years, so claimed child benefit from around Sepember 2022 to October 2023.

I cancelled the benefit after realising I would have to pay it ALL of it back due to the high income charge because my salary was £60k.

This was something that Martin Lewis raised with Jeremy Hunt last year as its unfair on single parents.  Because two working parents could earn £50k each with a household income of £100k, yet get all the child benefit.  Where as a single parent earning over £50k would have to pay some or all of it back.

The thresholds were changed in 2024, so that you only start paying some of it back if you earn over £60k.  But this came too late for me and my daughter is no longer in full time education so I cannot claim child benefit. 

I had to do a self assesment tax form in January 2024 to pay some of the child maintenance back and will need to do the same in Janiary 2025 to pay the remainder back.

This seems so unfair, how I just missed out and now have to pay it all back.  Is there a way around this or is it just tough luck ?

In total I received £1,371.80 in child benefit and paid back £583.00 in Janiary 2024 so will need to pay the remaining £788.80 in January 2025.  I'm hoping they calculate the remaining payment correctly and don't ask for more to be paid back.  I've even kept copies of my bank statements to prove the payments I received.

My daughter completed 2 years at college this year after leaving school at 16, but she's still unemployed and trying to find a job but keeps getting rejected.  I get no other financial support, not even from her mum (as she doesnt work) despite me paying child maintenance to her mum for 15 years when my daughhter lived with her.

Dazed_and_C0nfused

sky_rat said:

This is probably a long shot but very frustrating none the less....

I have been a resident single parent for the last few years, so claimed child benefit from around Sepember 2022 to October 2023.

I cancelled the benefit after realising I would have to pay it ALL of it back due to the high income charge because my salary was £60k.

This was something that Martin Lewis raised with Jeremy Hunt last year as its unfair on single parents.  Because two working parents could earn £50k each with a household income of £100k, yet get all the child benefit.  Where as a single parent earning over £50k would have to pay some or all of it back.

The thresholds were changed in 2024, so that you only start paying some of it back if you earn over £60k.  But this came too late for me and my daughter is no longer in full time education so I cannot claim child benefit. 

I had to do a self assesment tax form in January 2024 to pay some of the child maintenance back and will need to do the same in Janiary 2025 to pay the remainder back.

This seems so unfair, how I just missed out and now have to pay it all back.  Is there a way around this or is it just tough luck ?

In total I received £1,371.80 in child benefit and paid back £583.00 in Janiary 2024 so will need to pay the remaining £788.80 in January 2025.  I'm hoping they calculate the remaining payment correctly and don't ask for more to be paid back.  I've even kept copies of my bank statements to prove the payments I received.

My daughter completed 2 years at college this year after leaving school at 16, but she's still unemployed and trying to find a job but keeps getting rejected.  I get no other financial support, not even from her mum (as she doesnt work) despite me paying child maintenance to her mum for 15 years when my daughhter lived with her.

I think most of that is really something for you to take up with your MP.

But you do seem to have misunderstood a few aspects.

High Income Child Benefit Charge isn't based on your salary or earnings, it's your adjusted net income which counts.  And that is often a lot less than your salary.  Although it can be more.

Certain pension contributions can be taken into account for adjusted net income purposes.

Have you definitely factored them in (if relevant)?

Self Assessment doesn't just collect any High Income Child Benefit Charge, any other tax you might owe for that tax year is part of your Self Assessment liability so it's highly unlikely it will exactly match your expected figure.

sky_rat

Thanks Dazed_and_C0nfused

I asked for advice on this forum when I filled in the self assessment and used the figures from my P60 which includes pensions contributions...

https://forums.moneysavingexpert.com/discussion/6475390/very-confused-over-high-income-child-benefit-charge/p1

I have little hope or confidence in an MP helping