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  • FIRST POST
    • Smithers-Jones
    • By Smithers-Jones 12th Feb 19, 12:14 PM
    • 3Posts
    • 0Thanks
    Smithers-Jones
    High Income Benefit Charge - Help Needed
    • #1
    • 12th Feb 19, 12:14 PM
    High Income Benefit Charge - Help Needed 12th Feb 19 at 12:14 PM
    Hi - Iím hoping someone on here is able to give me some advice as HMRC have just sent me a demand for £2500 for a High Income Child Benefit charge (relating to years 2015-16 + 2016-17).

    As a bit of background, weíve claimed child benefit for both our daughters, but in 2015 i was promoted and my annual income rose to just over £50,000 - which i now understand to be the upper limit for claiming child benefit.

    Iíve always been employed therefore all my taxes have been deducted by PAYE. As HMRC have access to details of my annual income, I assumed that they wouldíve automatically made changes to the Child Benefits, in the same way they increase Tax and NI deductions.

    This is the first time Iíve had to deal with HMRC, but surely they have a responsibility to inform people when there annual income exceeds £50,000 and not leave this for nearly 3 years to reclaim charges.

    Iím also expecting further charges for the periods 2017-18 and 2018-19.

    Have other people had similar instances? Is there any grounds for appeal?

    Any help or advice is greatly appreciated. Thanks in advance.
Page 1
    • Comms69
    • By Comms69 12th Feb 19, 12:18 PM
    • 7,052 Posts
    • 7,488 Thanks
    Comms69
    • #2
    • 12th Feb 19, 12:18 PM
    • #2
    • 12th Feb 19, 12:18 PM
    Hi - Iím hoping someone on here is able to give me some advice as HMRC have just sent me a demand for £2500 for a High Income Child Benefit charge (relating to years 2015-16 + 2016-17).

    As a bit of background, weíve claimed child benefit for both our daughters, but in 2015 i was promoted and my annual income rose to just over £50,000 - which i now understand to be the upper limit for claiming child benefit.

    Iíve always been employed therefore all my taxes have been deducted by PAYE. As HMRC have access to details of my annual income, I assumed that they wouldíve automatically made changes to the Child Benefits, in the same way they increase Tax and NI deductions.

    This is the first time Iíve had to deal with HMRC, but surely they have a responsibility to inform people when there annual income exceeds £50,000 and not leave this for nearly 3 years to reclaim charges. - Absolutely not! It's your job to manage your benefit entitlement.

    Iím also expecting further charges for the periods 2017-18 and 2018-19.

    Have other people had similar instances? Is there any grounds for appeal? - No. This is entirely on you

    Any help or advice is greatly appreciated. Thanks in advance.
    Originally posted by Smithers-Jones


    Arrange a repayment plan asap. You have in effect defrauded the state for 4 years.
    • xylophone
    • By xylophone 12th Feb 19, 12:33 PM
    • 28,379 Posts
    • 17,176 Thanks
    xylophone
    • #3
    • 12th Feb 19, 12:33 PM
    • #3
    • 12th Feb 19, 12:33 PM
    https://www.moneysavingexpert.com/news/2018/11/hit-with-a-high-income-child-benefit-charge-penalty-between-2013/


    https://www.gov.uk/child-benefit-tax-calculator

    Have you considered reducing adjusted net income with pension contributions/charitable donations etc? See

    https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/
    • sportsarb
    • By sportsarb 12th Feb 19, 12:59 PM
    • 622 Posts
    • 454 Thanks
    sportsarb
    • #4
    • 12th Feb 19, 12:59 PM
    • #4
    • 12th Feb 19, 12:59 PM
    Its definitely not HMRC's responsibility to tell you what you are earning, that should go without saying really, as it is you and your employer that have the most up to date info.

    It is only relatively recently that HMRC have had access to real time information where it could even be a possibility that what you suggest, could be done, even then how are they to know what is a short term change in income and a long term one. For instance, you could have been temporarily promoted leading to a projection that you would hit £50,000, then returned to normal grade a few weeks later meaning you miss that earnings level.

    Its always best to assume that you need to tell government agencies everything income related when you are in receipt of benefits that are based on income, and, as they will probably lose the information, send it recorded delivery or write down the time/date that you talked to them over the phone.

    Not sure about how successful an appeal would be, ignorance is not an excuse as the information is out there if looked for, but at the same time you could give it a go. Just read up on the rules of the benefit before forming your arguments as it will probably help.
    • Darksparkle
    • By Darksparkle 12th Feb 19, 1:08 PM
    • 5,369 Posts
    • 3,494 Thanks
    Darksparkle
    • #5
    • 12th Feb 19, 1:08 PM
    • #5
    • 12th Feb 19, 1:08 PM
    You can appeal if you wish.

    The fact you say you assumed it would be automatically dealt with by HMRC suggests you were aware the charge applied to you and you could have easily looked up what to do.
    • John G Jones
    • By John G Jones 12th Feb 19, 8:34 PM
    • 376 Posts
    • 517 Thanks
    John G Jones
    • #6
    • 12th Feb 19, 8:34 PM
    • #6
    • 12th Feb 19, 8:34 PM
    What do you want to appeal?
    • Dazed and confused
    • By Dazed and confused 12th Feb 19, 9:56 PM
    • 3,860 Posts
    • 1,978 Thanks
    Dazed and confused
    • #7
    • 12th Feb 19, 9:56 PM
    • #7
    • 12th Feb 19, 9:56 PM
    I assumed that they would’ve automatically made changes to the Child Benefits, in the same way they increase Tax and NI deductions.
    When no changes were made to the amount of Child Benefit being paid how did you question this with HMRC?

    I’m also expecting further charges for the periods 2017-18 and 2018-19.
    Don't forget about the interest which will be charged for late payment on the 2015:16 and 2016:17 charges.

    And have you registered for Self Assessment? I would have thought you would need to file a return for 2017:18 (and 2018:19 in due course).

    You should get three months to complete the 2017:18 return before a penalty would be charged but the tax/HICBC would be due on 31:01:2019 so interest will be charged on anything paid late.
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