High Income Benefit Charge - Help Needed

Hi - I’m 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, we’ve 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.

I’ve 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 would’ve automatically made changes to the Child Benefits, in the same way they increase Tax and NI deductions.

This is the first time I’ve 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.

I’m 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.

Comments

  • Comms69
    Comms69 Posts: 14,229
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    Hi - I’m 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, we’ve 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.

    I’ve 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 would’ve automatically made changes to the Child Benefits, in the same way they increase Tax and NI deductions.

    This is the first time I’ve 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.

    I’m 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.



    Arrange a repayment plan asap. You have in effect defrauded the state for 4 years.
  • sportsarb
    sportsarb Posts: 1,069
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    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
    Darksparkle Posts: 5,465 Forumite
    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.
  • What do you want to appeal?
  • 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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