MSE News: Higher earner getting Child Benefit? Check if you can pay it back through your tax code

MSE_Petar

If you get Child Benefit and earn over £60,000 a year, you may now be able to pay the high-income tax charge through your tax code thanks to a long-awaited new service. The change means 10,000s will no longer have to file self-assessment tax returns just to pay this charge. Here's what you need to know.

Read the full story:
'Higher earner getting Child Benefit? Check if you can now pay it back through your tax code'

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nichocouk

Hello, that is welcome news. However I've used the HMRC tool linked to in your story to check if I need to fill in a self-assessment tax returns. I answered 'no' to all questions, income over £60000, and receiving child benefits. The took concludes by "You or your partner may need to send a return for 2024 to 2025 to pay the High Income Child Benefit Charge."
I'm confused!

sheramber

nichocouk said:

Hello, that is welcome news. However I've used the HMRC tool linked to in your story to check if I need to fill in a self-assessment tax returns. I answered 'no' to all questions, income over £60000, and receiving child benefits. The took concludes by "You or your partner may need to send a return for 2024 to 2025 to pay the High Income Child Benefit Charge."
I'm confused! 

Change from paying through Self Assessment to paying through PAYE

Contact HMRC by phone to tell them you want to stop paying through Self Assessment.

Statement said may not must. 

MSE_Petar

nichocouk said:

Hello, that is welcome news. However I've used the HMRC tool linked to in your story to check if I need to fill in a self-assessment tax returns. I answered 'no' to all questions, income over £60000, and receiving child benefits. The took concludes by "You or your partner may need to send a return for 2024 to 2025 to pay the High Income Child Benefit Charge."
I'm confused!

Hi @nichocouk

Thanks for flagging - we'll pass this on to HMRC. The new option to pay the charge only just launched so it's possible that HMRC hasn't yet updated its other tools to match.

It's also important to note that, if you've had to do self-assessment previously, you can't just stop doing it - you have to formally notify HMRC (as we say in the story, HMRC suggests calling it to do this).

Thanks again,

MSE Petar

g0009348

Hello - I've just tried to call HMRC and ask about doing this, so I no longer have to submit a self assessment.  They advised this article is wrong, and a self assessment will always be required......

@MSE_Petar

nichocouk

sheramber said:

Statement said may not must. 

True, fair enough. But I would argue this isn't a very helpful statement from the part of HMRC. If such a thing exists.

nichocouk

MSE_Petar said:

nichocouk said:

Hello, that is welcome news. However I've used the HMRC tool linked to in your story to check if I need to fill in a self-assessment tax returns. I answered 'no' to all questions, income over £60000, and receiving child benefits. The took concludes by "You or your partner may need to send a return for 2024 to 2025 to pay the High Income Child Benefit Charge."
I'm confused!

Hi @nichocouk

Thanks for flagging - we'll pass this on to HMRC. The new option to pay the charge only just launched so it's possible that HMRC hasn't yet updated its other tools to match.

It's also important to note that, if you've had to do self-assessment previously, you can't just stop doing it - you have to formally notify HMRC (as we say in the story, HMRC suggests calling it to do this).

Thanks again,

MSE Petar

Hi @MSE_Petar
Thank you, that's helpful. I will try to call when I have a chance. I'm worried by what @g0009348 was told though. Fingers crossed!

sheramber

nichocouk said:

sheramber said:

Statement said may not must. 

True, fair enough. But I would argue this isn't a very helpful statement from the part of HMRC. If such a thing exists.

Did you give personal information so HMRC could check your records?

If not, HMRC would not  able to say definitely so say ‘may’. 

Dazed_and_C0nfused

Not sure why this is being promoted in the way it is.

You have always been able to have High Income Child Benefit Charge provisionally collected via your tax code.  But then needed to file a Self Assessment return to finalise things.

What actually seems to be changing now is you can have HICBC provisionally collected via your tax code but don't need to file a tax return (if there is no reason other than HICBC to need to file one).

Presumably it will now be HMRC's annual reconciliation process which determines the final position.

https://www.gov.uk/tax-overpayments-and-underpayments

nichocouk

sheramber said:

nichocouk said:

sheramber said:

Statement said may not must. 

True, fair enough. But I would argue this isn't a very helpful statement from the part of HMRC. If such a thing exists.

Did you give personal information so HMRC could check your records?

If not, HMRC would not  able to say definitely so say ‘may’. 

The point is that HMRC has made a tool available for all online, its purpose being "Check if you need to send a Self Assessment tax return". I have provided straightforward answers to all questions and yet I am not more clued up. So yes I will call, and will provide all necessary information. In the meantime, I'd suggest that this tool is a bit pointless if it's not providing a straightforward answer to us users.
Thank you for your help.

Dazed_and_C0nfused

nichocouk said:

The point is that HMRC has made a tool available for all online, its purpose being "Check if you need to send a Self Assessment tax return". I have provided straightforward answers to all questions and yet I am not more clued up. So yes I will call, and will provide all necessary information. In the meantime, I'd suggest that this tool is a bit pointless if it's not providing a straightforward answer to us users.
Thank you for your help.

There definitely is a new service, albeit not quite the change that MSE are portraying it as.

https://www.gov.uk/child-benefit-tax-charge/pay-tax-charge-paye