Been told to pay back child benefit, please help

gb908010 · 11 June 2017 at 12:33PM

I have just returned from holiday to find a letter from hmrc saying I need to pay back child benefit for the past 3 tax years 2014,2015 and 2016.

My basic salary over these years has been £46k, £52k and £50k respectively plus my company car benefit.(£6k)
Now I didn't have a clue about this ruling and never received any letters otherwise I would have nipped it in the bud.

I've been told to pay back £1,817 for those 3 years😩, this has really annoyed me as I honestly didn know.
I'm employed and taxed via paye so no self assessment.

What are my options? Have I just got to bite the bullet and pay it? Or can I plead ignorance and try ask them to spread the payments over a period?

ess0two · 11 June 2017 at 12:46PM

Set up a monthly pay plan, unfortunately its upto you to opt out of receiving CB, had similar issue myself.

gb908010 · 11 June 2017 at 12:58PM

Did you get fined as well? That's what I'm dreading to be honest. Wonder how many families have been caught out with this.

xylophone · 11 June 2017 at 3:47PM

Had you considered increasing your pension contributions in future?

https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

Icequeen99 · 11 June 2017 at 4:31PM

gb908010 wrote: »

I have just returned from holiday to find a letter from hmrc saying I need to pay back child benefit for the past 3 tax years 2014,2015 and 2016.

My basic salary over these years has been £46k, £52k and £50k respectively plus my company car benefit.(£6k)
Now I didn't have a clue about this ruling and never received any letters otherwise I would have nipped it in the bud.

I've been told to pay back £1,817 for those 3 years😩, this has really annoyed me as I honestly didn know.
I'm employed and taxed via paye so no self assessment.

What are my options? Have I just got to bite the bullet and pay it? Or can I plead ignorance and try ask them to spread the payments over a period?

Are you sure you are being asked to pay back child benefit? Or are you being asked to pay the tax charge which on your income shouldn't be the full amount of child benefit received. You might want to get some advice as there could be penalties etc as well.

IQ

gb908010 · 11 June 2017 at 4:49PM

Thanks for the replies and the pension clue,I do contribute around £2,500 into my pension per year so potentially this would reduce the amount I have to pay back and seriously thinking of increasing my pension from 6% to 10% now.
Would the hmrc take this from me with my wage slips as proof or would I need an accountant?

I am not being asked to pay the full amount back only the tax charge.

I am hoping not to pay fines as I truly didn't know about this ruling

xylophone · 11 June 2017 at 5:25PM

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

gb908010 · 11 June 2017 at 5:39PM

Very interesting, thanks for that. Think I might need to speak to an accountant first.

Darksparkle · 11 June 2017 at 6:22PM

Given how publicised it was (and continues to be) I highly doubt they'd accept you pleading ignorance.

gb908010 · 11 June 2017 at 7:12PM

Well I must have been living in a shell as I have never heard of it until now, I've spoken to many of my work colleagues and they also were unaware of it.
If you don't get sent a letter from hmrc how are you supposed to know about it?

teddysmum · 11 June 2017 at 7:37PM

Our children are adults, but we know about it. It was widely publicised on tv and in the newspapers.

Been told to pay back child benefit, please help

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