High Income Child Benefit Charge

Dazed_and_C0nfused

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

sheramber said:

ceepan said:

sheramber said:

ceepan said:

After a few years of not claiming Child Benefit, my wife and I started claiming it again at the beginning of the 2024/2025 tax year due to the changes in the thresholds from £50000 - £60000 to £60000 - £80000.  As a result I needed to reregister for Self Assessment.  My P60 became available today so I thought I might as well complete my Self Assessment and get it out of the way.  Child Benefit is the only reason I need to complete Self Assessment.

I had firstly used https://www.gov.uk/child-benefit-tax-calculator to get an idea of how much I should pay back.  It said that I should pay back £796.  That is based on my income from my P60 of £67624.  I also added £240 that I pay to a pension, which it asked for before the tax relief had been adjusted.

When I attempted to complete my Self Assessment, using those same figures (Tax Paid for the year from my P60 is £16246) it claims that I have to payback £958.38.  The only thing different on my Self Assessment is that under the Pension I entered the value of £300 as it asked for it to include the 20% tax relief by taking the amount paid (£240 which is £20 a month) and dividing it by 80 and multiplying by 100. Under the UK Interest I put the total interest I have earned for the year of £400 which is untaxed.

I have 2 children so the value calculated by the form is £2212 for the year.

Can somebody please explain why there is such a big difference?  I expected a slight difference as I believe that even although the £400 of interest is under the £500 allowance I have before paying interest on that, it still has a slight impact on what I need to payback.

Thanks,
Paul

What code number is on your P60?

Are you a Scottish tax payer as the tax rates are different?

I am a Scottish Tax Payer.  The code on my P60 is S1300L.

What extra personal allowance have you  been given in your code to get 13000? 

I have no idea.  Have they possibly changed it to account for my pension contributions at the higher rate?  I will try and speak to somebody at HMRC to clarify but they are closed today.

A tax code is only ever an estimate.  If you haven't kept upto date to check if S1300L was accurate then you could well owe extra tax.

That is 430 extra tax code allowances over and above the bog standard 12570.

So for a Scottish higher rate payer that could easily be over £100 owed (after factoring in the little pension contribution).

Or could you have claimed some expenses and neglected to include them on your return?

I don't have any expenses to include.  Looking back they seem to have had me on that code for the since 2022.  I will contact them tomorrow to try and find out what is going on. Thanks for your input.

Why not just look at the breakdown of your current tax code online.

That will probably explain the 430.  Albeit you might then want to check if is the same in prior years.  But it probably would be.

I can't see a breakdown for this current year or 2024-2025.  The 3 years prior are as below.  My assumption is that the £312 is for pension contributions but They am lost. I will contact them over the next few days to try and workout what is going on.

Tax-free income6 April 2023 to 5 April 2024

Tax-free income

Description	Amount
Personal Allowance	£12,570.00
Other allowances, deductions and expenses	£312.00

That £312 is far more likely to be an old WFH claim.

You need to get it removed from your code to stop further arrears continuing to build up.

ceepan

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

sheramber said:

ceepan said:

sheramber said:

ceepan said:

After a few years of not claiming Child Benefit, my wife and I started claiming it again at the beginning of the 2024/2025 tax year due to the changes in the thresholds from £50000 - £60000 to £60000 - £80000.  As a result I needed to reregister for Self Assessment.  My P60 became available today so I thought I might as well complete my Self Assessment and get it out of the way.  Child Benefit is the only reason I need to complete Self Assessment.

I had firstly used https://www.gov.uk/child-benefit-tax-calculator to get an idea of how much I should pay back.  It said that I should pay back £796.  That is based on my income from my P60 of £67624.  I also added £240 that I pay to a pension, which it asked for before the tax relief had been adjusted.

When I attempted to complete my Self Assessment, using those same figures (Tax Paid for the year from my P60 is £16246) it claims that I have to payback £958.38.  The only thing different on my Self Assessment is that under the Pension I entered the value of £300 as it asked for it to include the 20% tax relief by taking the amount paid (£240 which is £20 a month) and dividing it by 80 and multiplying by 100. Under the UK Interest I put the total interest I have earned for the year of £400 which is untaxed.

I have 2 children so the value calculated by the form is £2212 for the year.

Can somebody please explain why there is such a big difference?  I expected a slight difference as I believe that even although the £400 of interest is under the £500 allowance I have before paying interest on that, it still has a slight impact on what I need to payback.

Thanks,
Paul

What code number is on your P60?

Are you a Scottish tax payer as the tax rates are different?

I am a Scottish Tax Payer.  The code on my P60 is S1300L.

What extra personal allowance have you  been given in your code to get 13000? 

I have no idea.  Have they possibly changed it to account for my pension contributions at the higher rate?  I will try and speak to somebody at HMRC to clarify but they are closed today.

A tax code is only ever an estimate.  If you haven't kept upto date to check if S1300L was accurate then you could well owe extra tax.

That is 430 extra tax code allowances over and above the bog standard 12570.

So for a Scottish higher rate payer that could easily be over £100 owed (after factoring in the little pension contribution).

Or could you have claimed some expenses and neglected to include them on your return?

I don't have any expenses to include.  Looking back they seem to have had me on that code for the since 2022.  I will contact them tomorrow to try and find out what is going on. Thanks for your input.

Why not just look at the breakdown of your current tax code online.

That will probably explain the 430.  Albeit you might then want to check if is the same in prior years.  But it probably would be.

I can't see a breakdown for this current year or 2024-2025.  The 3 years prior are as below.  My assumption is that the £312 is for pension contributions but They am lost. I will contact them over the next few days to try and workout what is going on.

Tax-free income6 April 2023 to 5 April 2024

Tax-free income

Description	Amount
Personal Allowance	£12,570.00
Other allowances, deductions and expenses	£312.00

I have worked out the £312.  That is carried over from the last self assessment I completed for 2021-2022 and was expenses for working from home at the £6 per week, so £52 x 6.  That has obviously carried over.  I still work from home 3 days a week, of which 1 is mandatory due to the office only opening Monday to Thursday and not Friday. My contract is Monday to Friday so I believe that I am still entitled to that.

Dazed_and_C0nfused

ceepan said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

sheramber said:

ceepan said:

sheramber said:

ceepan said:

After a few years of not claiming Child Benefit, my wife and I started claiming it again at the beginning of the 2024/2025 tax year due to the changes in the thresholds from £50000 - £60000 to £60000 - £80000.  As a result I needed to reregister for Self Assessment.  My P60 became available today so I thought I might as well complete my Self Assessment and get it out of the way.  Child Benefit is the only reason I need to complete Self Assessment.

I had firstly used https://www.gov.uk/child-benefit-tax-calculator to get an idea of how much I should pay back.  It said that I should pay back £796.  That is based on my income from my P60 of £67624.  I also added £240 that I pay to a pension, which it asked for before the tax relief had been adjusted.

When I attempted to complete my Self Assessment, using those same figures (Tax Paid for the year from my P60 is £16246) it claims that I have to payback £958.38.  The only thing different on my Self Assessment is that under the Pension I entered the value of £300 as it asked for it to include the 20% tax relief by taking the amount paid (£240 which is £20 a month) and dividing it by 80 and multiplying by 100. Under the UK Interest I put the total interest I have earned for the year of £400 which is untaxed.

I have 2 children so the value calculated by the form is £2212 for the year.

Can somebody please explain why there is such a big difference?  I expected a slight difference as I believe that even although the £400 of interest is under the £500 allowance I have before paying interest on that, it still has a slight impact on what I need to payback.

Thanks,
Paul

What code number is on your P60?

Are you a Scottish tax payer as the tax rates are different?

I am a Scottish Tax Payer.  The code on my P60 is S1300L.

What extra personal allowance have you  been given in your code to get 13000? 

I have no idea.  Have they possibly changed it to account for my pension contributions at the higher rate?  I will try and speak to somebody at HMRC to clarify but they are closed today.

A tax code is only ever an estimate.  If you haven't kept upto date to check if S1300L was accurate then you could well owe extra tax.

That is 430 extra tax code allowances over and above the bog standard 12570.

So for a Scottish higher rate payer that could easily be over £100 owed (after factoring in the little pension contribution).

Or could you have claimed some expenses and neglected to include them on your return?

I don't have any expenses to include.  Looking back they seem to have had me on that code for the since 2022.  I will contact them tomorrow to try and find out what is going on. Thanks for your input.

Why not just look at the breakdown of your current tax code online.

That will probably explain the 430.  Albeit you might then want to check if is the same in prior years.  But it probably would be.

I can't see a breakdown for this current year or 2024-2025.  The 3 years prior are as below.  My assumption is that the £312 is for pension contributions but They am lost. I will contact them over the next few days to try and workout what is going on.

Tax-free income6 April 2023 to 5 April 2024

Tax-free income

Description	Amount
Personal Allowance	£12,570.00
Other allowances, deductions and expenses	£312.00

I have worked out the £312.  That is carried over from the last self assessment I completed for 2021-2022 and was expenses for working from home at the £6 per week, so £52 x 6.  That has obviously carried over.  I still work from home 3 days a week, of which 1 is mandatory due to the office only opening Monday to Thursday and not Friday. My contract is Monday to Friday so I believe that I am still entitled to that.

Slight contradiction there 🤔

I don't have any expenses to include.

ceepan

Dazed_and_C0nfused said:

ceepan said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

Dazed_and_C0nfused said:

ceepan said:

sheramber said:

ceepan said:

sheramber said:

ceepan said:

After a few years of not claiming Child Benefit, my wife and I started claiming it again at the beginning of the 2024/2025 tax year due to the changes in the thresholds from £50000 - £60000 to £60000 - £80000.  As a result I needed to reregister for Self Assessment.  My P60 became available today so I thought I might as well complete my Self Assessment and get it out of the way.  Child Benefit is the only reason I need to complete Self Assessment.

I had firstly used https://www.gov.uk/child-benefit-tax-calculator to get an idea of how much I should pay back.  It said that I should pay back £796.  That is based on my income from my P60 of £67624.  I also added £240 that I pay to a pension, which it asked for before the tax relief had been adjusted.

When I attempted to complete my Self Assessment, using those same figures (Tax Paid for the year from my P60 is £16246) it claims that I have to payback £958.38.  The only thing different on my Self Assessment is that under the Pension I entered the value of £300 as it asked for it to include the 20% tax relief by taking the amount paid (£240 which is £20 a month) and dividing it by 80 and multiplying by 100. Under the UK Interest I put the total interest I have earned for the year of £400 which is untaxed.

I have 2 children so the value calculated by the form is £2212 for the year.

Can somebody please explain why there is such a big difference?  I expected a slight difference as I believe that even although the £400 of interest is under the £500 allowance I have before paying interest on that, it still has a slight impact on what I need to payback.

Thanks,
Paul

What code number is on your P60?

Are you a Scottish tax payer as the tax rates are different?

I am a Scottish Tax Payer.  The code on my P60 is S1300L.

What extra personal allowance have you  been given in your code to get 13000? 

I have no idea.  Have they possibly changed it to account for my pension contributions at the higher rate?  I will try and speak to somebody at HMRC to clarify but they are closed today.

A tax code is only ever an estimate.  If you haven't kept upto date to check if S1300L was accurate then you could well owe extra tax.

That is 430 extra tax code allowances over and above the bog standard 12570.

So for a Scottish higher rate payer that could easily be over £100 owed (after factoring in the little pension contribution).

Or could you have claimed some expenses and neglected to include them on your return?

I don't have any expenses to include.  Looking back they seem to have had me on that code for the since 2022.  I will contact them tomorrow to try and find out what is going on. Thanks for your input.

Why not just look at the breakdown of your current tax code online.

That will probably explain the 430.  Albeit you might then want to check if is the same in prior years.  But it probably would be.

I can't see a breakdown for this current year or 2024-2025.  The 3 years prior are as below.  My assumption is that the £312 is for pension contributions but They am lost. I will contact them over the next few days to try and workout what is going on.

Tax-free income6 April 2023 to 5 April 2024

Tax-free income

Description	Amount
Personal Allowance	£12,570.00
Other allowances, deductions and expenses	£312.00

I have worked out the £312.  That is carried over from the last self assessment I completed for 2021-2022 and was expenses for working from home at the £6 per week, so £52 x 6.  That has obviously carried over.  I still work from home 3 days a week, of which 1 is mandatory due to the office only opening Monday to Thursday and not Friday. My contract is Monday to Friday so I believe that I am still entitled to that.

Slight contradiction there 🤔

I don't have any expenses to include.

Apologies.  I had forgotten all about that but just checked the guidance.  As I say I am no expert on this.  The bit that is still confusing me is the £118 discrepancy.

sheramber

The rules for claiming wfh changed after Covid ended. 

Now you can only claim for the weeks you actually work from home. 

Any weeks holidays need to be deducted from 52 weeks. 

https://www.tax.service.gov.uk/claim-tax-relief-expenses/inform-customer-claim-now-in-weeks

Claims for tax years on or after 6 April 2023 are now calculated in weeks

If you work at home one or more days in a week, you can claim for that whole week.

If you are not sure how many weeks you will be eligible to claim for, we advise you to wait until you know because any further changes may take longer to process.

If you would like to claim now, we will check to see if you are eligible.

ceepan

sheramber said:

The rules for claiming wfh changed after Covid ended. 

Now you can only claim for the weeks you actually work from home. 

Any weeks holidays need to be deducted from 52 weeks. 

https://www.tax.service.gov.uk/claim-tax-relief-expenses/inform-customer-claim-now-in-weeks

Claims for tax years on or after 6 April 2023 are now calculated in weeks

If you work at home one or more days in a week, you can claim for that whole week.

If you are not sure how many weeks you will be eligible to claim for, we advise you to wait until you know because any further changes may take longer to process.

If you would like to claim now, we will check to see if you are eligible.

Did this come into effect for the 2022-2023 tax year?  What is the best way to rectify this?  Will the value I put for expenses on this year's Self Assessment be used to update my 2025-2026 in the next few weeks so I don't end up under paying taxes via PAYE or do I need to contact HMRC to have them updated their info to prompt a change to my tax code?

Sorry for all of the questions.  Apparently tax isn't supposed to be taxing.

Dazed_and_C0nfused

ceepan said:

sheramber said:

The rules for claiming wfh changed after Covid ended. 

Now you can only claim for the weeks you actually work from home. 

Any weeks holidays need to be deducted from 52 weeks. 

https://www.tax.service.gov.uk/claim-tax-relief-expenses/inform-customer-claim-now-in-weeks

Claims for tax years on or after 6 April 2023 are now calculated in weeks

If you work at home one or more days in a week, you can claim for that whole week.

If you are not sure how many weeks you will be eligible to claim for, we advise you to wait until you know because any further changes may take longer to process.

If you would like to claim now, we will check to see if you are eligible.

Did this come into effect for the 2022-2023 tax year?  What is the best way to rectify this?  Will the value I put for expenses on this year's Self Assessment be used to update my 2025-2026 in the next few weeks so I don't end up under paying taxes via PAYE or do I need to contact HMRC to have them updated their info to prompt a change to my tax code?

Sorry for all of the questions.  Apparently tax isn't supposed to be taxing.

That will likely depend on how you complete the question about keeping your tax code upto date near the end of the return (next to the question about how you would prefer to pay any tax owed for 2024-25).

sheramber

ceepan said:

sheramber said:

The rules for claiming wfh changed after Covid ended. 

Now you can only claim for the weeks you actually work from home. 

Any weeks holidays need to be deducted from 52 weeks. 

https://www.tax.service.gov.uk/claim-tax-relief-expenses/inform-customer-claim-now-in-weeks

Claims for tax years on or after 6 April 2023 are now calculated in weeks

If you work at home one or more days in a week, you can claim for that whole week.

If you are not sure how many weeks you will be eligible to claim for, we advise you to wait until you know because any further changes may take longer to process.

If you would like to claim now, we will check to see if you are eligible.

Did this come into effect for the 2022-2023 tax year?  What is the best way to rectify this?  Will the value I put for expenses on this year's Self Assessment be used to update my 2025-2026 in the next few weeks so I don't end up under paying taxes via PAYE or do I need to contact HMRC to have them updated their info to prompt a change to my tax code?

Sorry for all of the questions.  Apparently tax isn't supposed to be taxing.

23/24 was the first year.

On your 24/25 return you  enter how much you are claiming for wfh in box for “ other expenses and capital allowances”.   This will 6 x how many weeks you are claiming.