High Income Child Benefit Charge

kidmugsy wrote: »

I suppose hmrc think that if you are capable of earning £50k p.a. you should be capable of behaving like an adult. Such sunny optimists.

"behaving like an adult"?

The OP has had a nasty surprise with the tax bill, something easily done if you have been PAYE all of your life and expect both the payroll department of your company and the tax man to have his house in order, seeing as both have accurate records of your earnings and contributions. It really shouldn't be an individuals responsibility to chase the tax man when they already have been presented with all of the information and facts.

And not everyone is interested in Tax, self employed, or dealing with other sources of income that warrant investigation into tax and or self assessment.

I imagine there have been quite a few people caught out by this.

StevenO

This part of your post would suggest you haven't understand how the High Income Child Benefit Charge actually works.

One person could earn 58k, and be the only earner in his household and have to pay it all back

StevenO wrote: »

From what I read the system is a shambles anyway. One person could earn 58k, and be the only earner in his household and have to pay it all back or his partner not be entitled to family allowance. Yet compare this to the couple next door earning 50k each having nearly double the income and they are still entitled to claim the full amount.

This really grinds my gears! I've just gone PAYE having been a contractor for a short period and on a salary of £59k. My wife will be part time (earning >£10k / year) when she returns from maternity leave, so we didn't bother claiming child benefit initially.

Then I realised that additional pension contributions would be deducted from my total, so I'm now claiming contributing 5% of my income via AVCs to reduce my take-home pay (makes sense as my employer does have a match scheme of sorts). I would contribute more but we can't afford to, as contrary to what the government thinks £59k is not a high income for a family in the south east.

So what is the process when the tax year ends? I'm supposed to register for self-assessment, fill out how much I've earned (presumably from my P60) and submit to the tax man, to be told how much I have to pay back?

Ironic that people who can afford to have kids and are of a generation which has already been stiffed for student loans now lose child benefit (especially when it's judged on individual as opposed to joint income), but that's a whole other conversation...!!

fiisch wrote: »

This really grinds my gears! I've just gone PAYE having been a contractor for a short period and on a salary of £59k. My wife will be part time (earning >£10k / year) when she returns from maternity leave, so we didn't bother claiming child benefit initially.

Then I realised that additional pension contributions would be deducted from my total, so I'm now claiming contributing 5% of my income via AVCs to reduce my take-home pay (makes sense as my employer does have a match scheme of sorts). I would contribute more but we can't afford to, as contrary to what the government thinks £59k is not a high income for a family in the south east.

So what is the process when the tax year ends? I'm supposed to register for self-assessment, fill out how much I've earned (presumably from my P60) and submit to the tax man, to be told how much I have to pay back?

Ironic that people who can afford to have kids and are of a generation which has already been stiffed for student loans now lose child benefit (especially when it's judged on individual as opposed to joint income), but that's a whole other conversation...!!

You need to go to the GOV website and check what your adjusted net income is as that's the figure used to work out what child benefit needs paying back. It's sometimes worth claiming even if you are going to pay it all back, as if it's claimed in the name of the low paid or non-working parent it gives them NI credits towards the state pension.

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 advance