High Income Child Benefit Charge

Well finally got hold of HMRC, they confirmed nothing had been sent out to us, as they have no record.

I questioned them as to why this has come about when my company pays them my PAYE tax every month, and have done for years, so they know what I earn, but still continued to may this benefit. He said he cant answer that, now there is a surprise.

They also said I cant stop it, as I asked for it to be stopped immediately, my partner does as she is the recipient.

So I cant stop it as I am not the recipient, but you can still come to me despite admitting you have never sent anything out about this to me or my partner, and claim I pay it back?

You cant make this up...

People need to understand that the legislation governing the tax rules makes it absolutely clear that the responsibility to ensure the correct amount of tax is paid lies with the Individual. This has always been the case.

HMRC are merely the collectors of tax. They are not there to hold everyones hand.

The Gov. UK website contains all of this information.

The letters were sent to people earning close to and over £50k in the first year the rules changed.

Anyone who claimed child benefit AFTER the rules changed was told about the limits at the time they claimed. Its on the claim form.

CBO (Child Benefit Office) pay child benefit, and whilst they may come under the umbrella of HMRC they dont have access to details of your income. There is also nothing stopping a person earning over £50k from claiming child benefit payments, it simply means the higher earner has to pay some or all of it back (1% repaid for every £100 taxable income over the limit).

Everyone needs to start understanding the tax rules much better as the proposed changes coming in future years means taxpayers will have far more responsibility to tell HMRC about changes. This is one of the reasons why the Personal Tax Account has been introduced.

Ignorance is not and never has been an acceptable/reasonable excuse.

You have 6 months from the end of the tax year to notify HMRC if you are due to pay the charge.

The higher income charge on CB was part of the Budget 2012 which reported on the BBC news, in the Telegraph and probably other papers.

I too received a letter today for 2014! My taxable income just nudged over the £50k to £52k by the time company car and health care were added. I did however, make £2.5k personal pension contributions - is it up to me to prove? I've since changed employers also moved the pension pot so little evidence.

MichelleUK wrote: »

Your pension contribution is a bit confusing! You stated that it was to a personal pension but also mention that you have changed employers. To clarify, was the pension contribution taken via the payroll or did you pay the pension company directly?

Just spoke to them on the phone today and employee occupational contributions don't count. Although mine was set up as a SIPP and administered by an outside organisation (Hargreaves Lansdowne) and made contributions through my payroll. I have since transferred this into a Local Government pension (my new employer). Not much evidence to provide them with.

It's not helped that I had 3 employers that tax year! One has my income way too high on the P60, this one didn't come with a company car and I believe they have my 45p per mileage claims as part of this income.

All a bit of a mess and difficult for me to challenge their findings.

I feel for everyone who has to pay, and feel your pain. I need to pay mine by 20th November - thanks HMRC just before Christmas!