Understanding Child Benefit Charge

RedGreen74

Hi, hoping someone can help me make sense of the Child Benefit Charge. I have 2 kids and have always received the child benefit which gets taken away again through a tax code adjustment for my husband's PAYE code as he earns about £60K. The code adjustment basically reduces his personal allowance. One is now an adult so I get less money so assumed this would mean the personal allowance reduction would go up but it seems to have gone down....its now 694L and the Child Benefit Charge is £5629. I don't understand why this is, and actually why the CB charge is so high considering we only get around £1,000 a year paid in child benefit.  Can anyone help me to understand. I haven't found anything helpful on the internet except to suggest that the amount taken away should equal the amount paid which it isn't and never has been....which leads me to panic that we have been overcharged for years (but can't imagine this to be true)? T.I.A

RedGreen74

RedGreen74 said:

Hi, hoping someone can help me make sense of the Child Benefit Charge. I have 2 kids and have always received the child benefit which gets taken away again through a tax code adjustment for my husband's PAYE code as he earns about £60K. The code adjustment basically reduces his personal allowance. One is now an adult so I get less money so assumed this would mean the personal allowance reduction would go up but it seems to have gone down....its now 694L and the Child Benefit Charge is £5629. I don't understand why this is, and actually why the CB charge is so high considering we only get around £1,000 a year paid in child benefit.  Can anyone help me to understand. I haven't found anything helpful on the internet except to suggest that the amount taken away should equal the amount paid which it isn't and never has been....which leads me to panic that we have been overcharged for years (but can't imagine this to be true)? T.I.A

ignore above....have realised an error in my thinking and now understand. Can't seem to delete post. 

[Deleted User]

RedGreen74 said:

RedGreen74 said:

Hi, hoping someone can help me make sense of the Child Benefit Charge. I have 2 kids and have always received the child benefit which gets taken away again through a tax code adjustment for my husband's PAYE code as he earns about £60K. The code adjustment basically reduces his personal allowance. One is now an adult so I get less money so assumed this would mean the personal allowance reduction would go up but it seems to have gone down....its now 694L and the Child Benefit Charge is £5629. I don't understand why this is, and actually why the CB charge is so high considering we only get around £1,000 a year paid in child benefit.  Can anyone help me to understand. I haven't found anything helpful on the internet except to suggest that the amount taken away should equal the amount paid which it isn't and never has been....which leads me to panic that we have been overcharged for years (but can't imagine this to be true)? T.I.A

ignore above....have realised an error in my thinking and now understand. Can't seem to delete post. 

Maybe the mods can delete it?- you have insufficient posts to be able to do so.