High Income Child Benefit Charge
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What do you mean by "net income"? After tax and NI??
Anyhow it's not net income its Adjusted Net Income which matters for the Child Benefit charge. This is a very specific calculation which you can find on gov.uk if you Google it.
You don't have to stop the payments. If your organised enough you could bank them, earn a bit of interest and then use the money to pay the tax charge. There are other things to consider so might be worth more research on this point.
You will almost certainly have to pay interest for paying the charge late but fessing up may save you from penalties (or reduce the level of the penalty).0 -
Dazed_and_confused wrote: »
Thnx both. Yes, I've come across those websites since this dawned on me. I have figured out I can contact them and stop paying it. But the minute I do that, no doubt i will be hit with an inquiry and a huge bill.
I'm (not complaining at all) over the 60K income bracket, so i'll essentially be getting nothing even if i do continue to claim and elect to pay back through tax. And i'm in sustained employment, so my understanding is that NI credits would only be reqd if i was unemployed or long term sick (have separate policy to cover this). So I'd much rather just get rid of this burden altogether.
My main concern right now is how I minimise the size of the bill. I get the impression I will be told I should have started filling in SAs and it was my duty to know that, and will be hit with a penalty for that. But more or less 5 years of Child Benefit + Penalties + Tax is going to kill me!
:(:( 0 -
THIS WILL MAKE EVERYONE FEEL BETTER.
I have never had a salary in excess of £50k. I have today received a demand from HMRC for the return of Child Benefit received in 2013/14. In 2013 I worked for 6 months and then was made redundant. My pay out took my "salary" over £60k (lucky me). Because I didn't work until the end of the tax year I had paid too much tax and received a tax rebate (lucky me). I managed to contact the the HMRC Compliance Department today (lucky me) and I said why didn't the HMRC Rebate Department tell me that I needed to fill in a self assessment form when I claimed the rebate. The reply was that it wasn't there job. Honestly you couln't make it up. Merry Xmas to all you over £50 k'ers.0 -
There is no such thing as the HMRC rebate department. So yes, you could make it up. Because you did.Happyhappyhappy wrote: »Honestly you couln't make it up.0 -
Hi, as the title suggests, any views on best way to pay this back? I earn over the 60k and my wife receives CB so I owe HMRC about 1500. I can choose to have this dealt with in my tax code next tax year - or pay them in cash. I'm thinking the tax code route is better as I could do without paying a lump sum at the moment - anything else I should take into consideration?
I was going to opt out of the payment but I might just keep it and continue to pay it back via following years tax code. make sense or bad idea?0 -
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i'm actually well over the 60K (commission etc) in most years so could not afford to offset the required amount to my pension0
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We’ve also been hit with a £3K charge plus penalties of £500 (we’ve appealed penalties but don’t expect much from that) and there will be another years to pay back on top of this when we do self assessment. So worried about this. Has anyone arranged to pay back monthly and if so over what period.0
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Slightly different twist on this for me.
Came back from holiday today to find a letter on the doormat addressed to my wife (whose surname HMRC have always misspelled). As I deal with all the household finances I opened it (I guess I could have sent it back saying not known at this address) and it was the same slightly assertive letter from HMRC that others on this thread seem to have received.
My wife and I are both reasonable earners and for all but one tax year since the new charge came into effect at least one of us has earned over £50k. It isn't consistent who is the higher earner as her earnings are volatile (depending on commission). As I already complete self assessment while my wife doesn't, I decided to tell HMRC on my forms that I was the higher earner even in years where this was stretching the truth (dare I say it even potentially misleading?).
So as far as I am concerned my wife doesn't owe HMRC anything. However there doesn't seem to be any way of communicating this easily to HMRC. My wife doesn't speak good English and the wait on the phone that I hear about would probably test her patience somewhat - sometimes I even have to pretend to be her when sorting out some of her finances with various banks etc. So it will need to be me that notifies them - will they listen to me as "household finance rep", especially as it's me that pays her tax charge? Can't HMRC tell that we have already paid the charge through my self assessment as we both live at the same address?
This is a real pain and waste of my time dealing with someone else's tax affairs, even if it is someone I love very much.If I had a pound for every time I didn't play the lottery...0 -
I suggest you ring before 8am. Despite this being a very busy time I was answered promptly one day last week. Ignore the bit about voice recognition, you go through after the 3rd refusal. Tell them you want to deal with her affairs, they will ask her to confirm & give the phone back to you.
I do this fairly regularly for a friend & it's always worked so far. I even give them the same false name every time, there is no way I want my real name associated with his somewhat chaotic affairs!0
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