High Income Child Benefit Charge

He said there were millions outstanding, which means that the media campaign did not work,

..or that people simply ignored it.....

Whilst I was aware of this at the time, and took the necessary steps to ensure I would not be hit by this (increased pension contributions), I do have sympathy with those who missed it, as many are not as clued up or as interested in this sort of thing as me. I think HMRC had a duty to chase things up earlier - I think it's outrageous to leave it 4 years and then ask for the full amount back plus penalties.

I wonder if it might be worth appealing if you have been caught out, at least the penalties and/or asking for repayment of the child benefit by installments rather than in one go. Others on here will know more about the likelihood of any success with this.

00ec25 wrote: »

as an opening stance in a negotiation all + penalties is surely the only place they can begin from. Doesn't mean that's what they'll end with.

After all they are dealing with those earning higher rate tax which makes them the top 15% of taxpaying society and thus people who should be clued up about what is going on. I well remember the person in our office who was moaning about this for weeks when it first came out.
https://www.gov.uk/government/statistics/number-of-individual-income-taxpayers-by-marginal-rate-gender-and-age

I'm not sure I follow the logic that if you are paying higher rate tax you are necessarily clued up with all the nuances and intricacies of Government policy and the tax system.

A lot of people who have been caught could be people who have only recently just crept over the higher income tax barrier (not rich by any means, especially in London), and who have a (possibly-ex) partner claiming the child benefit, not themselves.

I think the way this has been set up always made it more likely that people would be caught out, than is the case with other taxes\benefits; therefore HMRC should have been chasing people up earlier, not leaving it 4 years and applying penalties (after all they are the only people in possession of the full information on exactly who is claiming child benefit and paying HRT)

HMRC admitted to me on the phone yesterday that it is only in recent years that that have set up a department to investigate. Also that the benefits office have not been helpful with the supply of data. My NI number is linked to the tax code it is also linked to the CB claim. I told HMRC that I could teach them all about excel and how to use vlookup! It is six tax years that it has taken to do something that in many respects should be simple.

Swifty75 wrote: »

HMRC admitted to me on the phone yesterday that it is only in recent years that that have set up a department to investigate. Also that the benefits office have not been helpful with the supply of data. My NI number is linked to the tax code it is also linked to the CB claim. I told HMRC that I could teach them all about excel and how to use vlookup! It is six tax years that it has taken to do something that in many respects should be simple.

Of course it’s only been in recent years, it only started in 2013 with the first lot of returns due Jan 2014. Unsure what department they are referring to either, there’s always been departments that deal with self assessment checks. Do you honestly expect them to use an excel spreadsheet to keep details of millions of child benefit claimants, their partners and their income?