Late Penalty charges due to overpayment of Child benefit
Comments
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Same thing has happened to me. I've been PAYE all my working life and over the last few years my wage has crept over the threshold. Now I receive a letter from my taxman saying I owe them money. I don't have a problem with that, however the letter also rather ominously lets me know there are penalties involved and I will have to pay them, though doesn't actually give me a figure.
I tried calling the phone number on the letter but there's no response; the phone isn’t being picked up. Does anyone know how best to get in contact with them? How should I proceed?
I know it's my fault, "ignorance is no defence", etc, but I am surprised they will be charging me for two years worth of late payments when I wasn't even aware of the debt. This is the kind of behaviour you'd expect from a loan shark ;(
Many thanks in advance0 -
p00hsticks wrote: »But you still need to be registered for Child Benefit, I think ?
The OP said she had cancelled their claim..
I'm not sure how you go about getting the NI credits but not receiving the money....
We decided that DH would continue to claim the CB (and get the NI credits) and I paid it back about a year later when the self assessment stuff sorted out how much it all was.0 -
I'll keep it short, but I am in the same situation as a lot of people on here.
My circumstances did not change, the rules did! Some people do not read the newspaper regularly, they have other things to deal with, like kids and family. I certainly did not know about the change in 'their' circumstances.
Although i do not agree on the methodology of the changes; on sole income; not joint, i have no problem paying the tax owed back. However £564.64 in interest and charges is disgusting! I wish i could find a savings account offering this sort of return!0 -
We have just been hit with a £3k bill too. We didn't realise that the rules have changed. As the ladies above have said this is partly our fault for not listening to the news/ papers etc. We did not receive any letter from HMRC.
My issue is we have been given 3 weeks to pay it and we simply don't have that kind of cash available. I saw that someone arranged monthly direct debits? How can this be set up? Please advise. We totally accept that it has to be paid back but not everyone has £3000 lying around?? Thanks in advance0 -
I am sorry for the OP but I am also furious at HMRC for not doing their job properly. We gave up our child benefits as my earning is above the threshold (My wife does not work) but I just found out that some one I know who is earning over £1500000/year is still getting child benefit paid to his wife as he never bothered cancelling them and he never declares them in his self assessment. I am also aware of other people who moved to work abroad years ago (especially in UAE,Qatar, Saudi Arabia) who are earning tax free handsome salaries and still having their child benefits paid into their UK accounts..they come in the summer (when temperature is soaring in the Gulf) to find nice £4000 or even more waiting for them as holiday money.0
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I am sorry for the OP but I am also furious at HMRC for not doing their job properly. We gave up our child benefits as my earning is above the threshold (My wife does not work) but I just found out that some one I know who is earning over £1500000/year is still getting child benefit paid to his wife as he never bothered cancelling them and he never declares them in his self assessment. I am also aware of other people who moved to work abroad years ago (especially in UAE,Qatar, Saudi Arabia) who are earning tax free handsome salaries and still having their child benefits paid into their UK accounts..they come in the summer (when temperature is soaring in the Gulf) to find nice £4000 or even more waiting for them as holiday money.
What people say and what is fact are often dIfferent.
However, if it bothers you that much then report them to HMRC. Nobody elesecan do any8thing about it.0 -
I have just had a long conversation with the Child Benefit people.
They tell me I cant stop the benefit, my partner has to....
However they will still chase ME for payment.......
I am not paying my partners bills/debts....
They also knew they knew about this in 2014, but failed to contact me, they have never sent my partner a letter either.
I am appealing this, to say it has been handled badly by HMRC is an understatement!!!!0 -
After hearing that a colleague has been charged as many of you have - I have now looked into this ...... Long story short I have been over paid .... Does anyone know .....If I inform them will I get charged the £3K or not?
Sleepless nights over stressing over this0 -
What £3k?
The Child Benefit charge will depend on your own income (Google adjusted net income as that is what counts for this), how much child benefit was received and how many years are involved.
But you may be able to keep additional charges such as interest and penalties to a minimum by coming forward yourself rather than waiting for HMRC to get round to you.
Interest will usually be charged from 31 January after the end of the tax year in question so the sooner you get it sorted and paid the less interest you are likely to owe.0 -
Exactly the same has happened to me.
No real change in my circumstances over recent years - only thing that has changed is the new rules applicable from Jan 2013. Surely there has to be some reasonable expectation that such changes need to be communicated directly and not simply rely on Media Ad Campaigns ??
Now faced with more than £5k of over-payments plus Interest / Penalties being charged at 10% and 20% because I deliberately failed to notify HMRC and the excessive time that has lapsed!! Situation = Crazy.
Take a look at the Charter on Gov.uk -
1.2 "keep any costs to a minimum" - charging 20% interest for a debt I knew nothing about ??
1.7 "charge interest and penalties where appropriate and be reasonable in how we use our powers"
2.1 obligation on the taxpayer to "give us all the relevant facts and information ...we ask you for"
Can anyone offer advice on whether HMRC can reasonably charge interest / penalties in this instance ?? Also is there any duration beyond which taxes cannot be reclaimed in this way ??0
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