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High Income Child Benefit Charge

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High Income Child Benefit Charge

edited 30 November -1 at 12:00AM in Benefits & Tax Credits
43 replies 6K views
NearlydebtfreeNearlydebtfree Forumite
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edited 30 November -1 at 12:00AM in Benefits & Tax Credits
Hi

I have just come back from work to a letter from HMRC re the HICBC and I have now worked out that I owe them money. Totally put my hands up, I didn't know about the charge, and I don't remember hearing about it, but I am not going to argue this with them as it is entirely my own fault - ignorance is no defence. Payment was changed to my account on my divorce and I just simply had a letter confirming what I would receive. I have obviously missed the news about it!

Anyway - I have today registered for self-assessment online and I assume I wait for a code from them or something and then fill in a tax return for the last 3 years which is when I went over the limit. I have also stated that I do not want to receive it anymore and filled a form in for that tonight.

My question is - do I have to repay the sum immediately? They have only asked me to fill in details up to 2017-18 so far and not 2018-19. I can pay it but I would need a little time and I just wondered on their time frame or if it just a case of cough up now? Am I also likely to be hit with a penalty as I have looked at my tax returns and I earnt £1k over the limit in 2015-2016 but that was the first time I went over from 2013.I was hoping by responding to them straightaway to deal with it they may be kinder but am I just being ridiculous!

I am not complaining, I am taking the full responsibility and just want to sort it without too much trauma.

Other than that a joyous letter to come home too :beer:
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Replies

  • MrsC....tobeMrsC....tobe Forumite
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    My husband has one of these letters aswell. They want him to go back to 2012/13. Nightmare. They reckon the information is all on P60 and P11D etc but on looking at his P60s none one of them shows his pension contributions so he’s going to have to go back through every single payslip to try and find the information. It doesn’t help that all his payslips are online from both of his employments so he’s currently away back to work to get his laptop so we can start trawling information!
    :heart: no longer ...tobe! Married 20/06/13 :heart:
    :male: gorgeous baby boy born 22/10/14 :male:
    MFW #92 start Jan 20
  • It's a fun letter to come home to isn't it! What have they said about time to pay?

    I wish I had known as I just would have told them I didn't want it but hey ho!

    I don't think I have payslips from 2013!
  • xylophonexylophone Forumite
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    Are you sure that you owe HMRC?

    Have you calculated your adjusted net income for the years in question, taking into account pension contributions etc?

    https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/

    https://www.gov.uk/child-benefit-tax-charge
  • MrsC....tobeMrsC....tobe Forumite
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    It's a fun letter to come home to isn't it! What have they said about time to pay?

    I wish I had known as I just would have told them I didn't want it but hey ho!

    I don't think I have payslips from 2013!

    They basically want him to tell them now how much he owes for 17/18! Electronic payslips don’t go back far enough for one employment, they’re only available for 12 months and after that it’s P60s which don’t detail pensions! it’s a nightmare!

    They want him to go back to 2012/2013 but he doesn’t have that information, I’m sure in Scotland you only need to retain for 5 years, I’d need to double check that.
    :heart: no longer ...tobe! Married 20/06/13 :heart:
    :male: gorgeous baby boy born 22/10/14 :male:
    MFW #92 start Jan 20
  • binkydoormatbinkydoormat Forumite
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    I've just become aware of this charge. My income went over 50k for the first time (in fact it went over 60k) back in 2015, after the charge was implemented, and I had no idea about the need to do a self assessment return. I have always been PAYE and assumed HMRC systems talked to each other (!) so they would know if I shouldn't be getting CB any more. In fact, it's my wife that receives the CB. I'd forgotten we even still received it.
    I think this means I now need to contact HMRC voluntarily and then wait for the massive bill for all the CB we've received for 2 children since summer 2015 - about £8k's worth!
    Or am I missing something? (Please tell me I am.)
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • calcotticalcotti Forumite
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    ..it's my wife that receives the CB. I'd forgotten we even still received it.

    Which I think has caught a lot of people out.
    Or am I missing something? (Please tell me I am.

    I don't think you are missing anything.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • binkydoormatbinkydoormat Forumite
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    PS: this House of Commons briefing paper, published yesterday (as a new member of the forum I can't post the link to it), says “HMRC checks each year and where all the relevant information is held, writes to customers explaining what they need to do to pay HICBC and avoid penalties.”
    But they've certainly never written to me about it.
  • edited 18 October 2019 at 4:15PM
    calcotticalcotti Forumite
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    edited 18 October 2019 at 4:15PM
    PS: this House of Commons briefing paper, published yesterday (as a new member of the forum I can't post the link to it), says “HMRC checks each year and where all the relevant information is held, writes to customers explaining what they need to do to pay HICBC and avoid penalties.”
    But they've certainly never written to me about it.
    This is the link for those who would like to read it.
    https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8631

    in addition to the paragraph you quoted I note "HMRC is already writing to customers who might be liable to High Income Child Benefit Charge in 2016 to 2017 and 2017 to 2018, to help them meet their tax obligations in time to avoid paying a penalty." (page 9)

    Do remember that the threshold is not simply your gross pay. It is your adjusted net income which is your total taxable income before any personal allowances but less things like pension contributions and Gift Aid. Does however include the value of benefits in kind. https://www.gov.uk/guidance/adjusted-net-income
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Hi - I think if you tell HMRC before they tell you they are less likely to try and fine you for not notifying them! I have had to complete a questionnaire as to why I didn't tell them, so no idea if I will be fined or not!

    I genuinely did not know but not sure this will work anyway - shall wait and see! If you do contact them you need to provide them with your information from 2013 onwards and work out your taxable income and how much benefit you received and work out how much you owe them.

    Good luck!
  • I also came home to this letter yesterday and I am in a complete tail spin. Its only asking for 2017-2018 tax year but I think I will be liable back for a few years. I knew nothing about this an don't feel it was widely know. What a complete farce for £85 per month.


    My question is how do they make you pay it back?
    Can you stop receiving it with immediate effect?
    How are your pension contributions taken into account.
    I got married in 2017 so I think my new husbands salary with take us over the £60k threshold, but he's taken into account on his daughters child benefit (who doesn't live with us). My son isn't his child?
    I sometimes work from home, which I think I can claim back, also paid additional into my pension which doesn't show on my P60 and also mileage which I think I can claim the difference between 45p per mile and what my company have paid me?


    Any other things I can add to my self assessment claim?




    Thanks


    Julia
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