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  • FIRST POST
    • Libbyd
    • By Libbyd 26th Feb 18, 11:57 AM
    • 47Posts
    • 26Thanks
    Libbyd
    Repaying child benefit overpayment
    • #1
    • 26th Feb 18, 11:57 AM
    Repaying child benefit overpayment 26th Feb 18 at 11:57 AM
    Child benefit was over paid and we received a letter before Christmas saying we owed 3000. We had no idea, I have been chronically ill for 2 years and hubby works full time, 3 children and he cares for me. This just slipped past us without us realising.

    HMRC are now saying they expect a lump sum, something we just don't have. Hubby has explained our circumstances and they were not sympathetic. He offered to pay what we could afford each month and they refused.

    What can we do? we don't have 3k lying around. We are worried they will juset change his tax code and take a lump sum each month that will leave us in a mess. Can they do this?

    Any advice much appreciated.

    Libby
Page 3
    • pmlindyloo
    • By pmlindyloo 1st Mar 18, 3:30 PM
    • 11,475 Posts
    • 13,369 Thanks
    pmlindyloo
    Why is this?
    Originally posted by Libbyd
    This is why:

    https://www.unbiased.co.uk/news/tax/how-to-avoid-the-child-benefit-tax-charge

    If he paid more in pension contributions then you may still be eligible for child benefit.

    Can't see that this is particularly helpful for you at the moment.

    Since you do not want to share your personal financial situation with us then I do not honestly think there is much more advice we can give.

    They will usually ask for a lump sum but you can try to make arrangements to repay it over a period of time.

    You husband has been dealing with this and spoke to them about your financial situation.

    I do not know exactly what was said (obviously!) nor whether he has completed an Income & Expenditure form for them.

    If you want to try again to get a repayment plan that you can afford then perhaps you need some help completing the I&E form. I realise that you cannot get to CAB yourself but could your husband take a day's holiday and try to get some help?

    I do feel for you but I cannot honestly think of much else you can do.

    Some ideas possibly (other than reducing your expenditure to the bare bones)

    Loan/ from family/friends/bank/credit card which would allow you to pay it back more slowly (not ideal but a debt is a debt)

    Ask for a mortgage holiday/go interest only for a while/extend your term lowering repayments

    Will come back if I think of any more ...........
    • JimmyTheWig
    • By JimmyTheWig 1st Mar 18, 3:57 PM
    • 11,619 Posts
    • 11,231 Thanks
    JimmyTheWig
    I wish I never posted.
    Originally posted by Libbyd
    No, don't wish that.
    You've had a suggestion of a 0% credit card, which I think is the right answer.
    • Libbyd
    • By Libbyd 4th Mar 18, 9:02 AM
    • 47 Posts
    • 26 Thanks
    Libbyd
    Thank you all. Hubby has spoken to them and offered 1000 now and then we can spread payments over a year or so. Phew. Huge relief. Hubby got an unexpected bonus from work on Friday, something we get annually but was told they'd not receive anything this year (not sure why) but 1000 is better than nothing, and we gave it all to the tax man as we are serious about paying this off, not trying to dodge anything at all.

    They understood our circumstances are difficult at the moment with myself chronically unwell, 3 children and I am still awaiting a PIP decision which is taking forever.

    It shows it depends who you get from HMRC on the phone, some are so difficult to talk to, where as others are very helpful. That's the experience hubby has had anyway.

    Thank you to those of you who showed compassion and gave some good advice. I appreciate it.

    Lib
    • jayII
    • By jayII 4th Mar 18, 9:52 AM
    • 38,158 Posts
    • 107,075 Thanks
    jayII
    Thank you all. Hubby has spoken to them and offered 1000 now and then we can spread payments over a year or so. Phew. Huge relief. Hubby got an unexpected bonus from work on Friday, something we get annually but was told they'd not receive anything this year (not sure why) but 1000 is better than nothing, and we gave it all to the tax man as we are serious about paying this off, not trying to dodge anything at all.

    They understood our circumstances are difficult at the moment with myself chronically unwell, 3 children and I am still awaiting a PIP decision which is taking forever.

    It shows it depends who you get from HMRC on the phone, some are so difficult to talk to, where as others are very helpful. That's the experience hubby has had anyway.

    Thank you to those of you who showed compassion and gave some good advice. I appreciate it.

    Lib
    Originally posted by Libbyd
    Thank you for updating, that's great news for you all!

    One thing you might want to consider is that if you claim child benefit, it protects your national insurance payments for state pension until your youngest child is 12. Unless PIP also does this?

    With that in mind, it might be worth you (it must be you) claiming the child benefit and putting it to one side to repay at the end of each tax year. See https://www.moneyadviceservice.org.uk/en/articles/changes-to-child-benefit-from-2013 for details.

    Also, as mentioned by a poster above, if your husband's employer allows him to make additional pension payments through salary sacrifice, he could use this to bring his income to just below the 50K threshold. You'd then be entitled to child benefit. Depending on his salary, you could be just as well off but he'd also have additional pension funds which is never a bad thing.
    Fighting the biggest battle of my life. Started 30th January 2018.
    • pmlindyloo
    • By pmlindyloo 4th Mar 18, 10:14 AM
    • 11,475 Posts
    • 13,369 Thanks
    pmlindyloo
    I am glad you have been able to sort this out.

    Continuing from Jay11's post.....

    If your children are over 12 yrs old then you would not be receiving national insurance credits from the child benefit even if you claimed it and put it aside.

    I do think you should consider this aspect.

    Did you ever claim ESA? Have you got an open claim for this although not being paid? If you have then you will be getting NI credits towards your pension.
    • antonic
    • By antonic 4th Mar 18, 2:47 PM
    • 1,796 Posts
    • 2,626 Thanks
    antonic
    Thank you all. Hubby has spoken to them and offered 1000 now and then we can spread payments over a year or so. Phew. Huge relief. Hubby got an unexpected bonus from work on Friday, something we get annually but was told they'd not receive anything this year (not sure why) but 1000 is better than nothing, and we gave it all to the tax man as we are serious about paying this off, not trying to dodge anything at all.

    They understood our circumstances are difficult at the moment with myself chronically unwell, 3 children and I am still awaiting a PIP decision which is taking forever.

    It shows it depends who you get from HMRC on the phone, some are so difficult to talk to, where as others are very helpful. That's the experience hubby has had anyway.

    Thank you to those of you who showed compassion and gave some good advice. I appreciate it.

    Lib
    Originally posted by Libbyd
    Glad to hear you got it sorted.
    LBM Sept 2005 spoke to Payplan - brilliant !
    Dec 2005 debt 21.959.64 + HBOS Int 1769.32
    June 2013 debt 0.00
    DF status confirmed by email 10/07/13
    DFW Long Hauler 297
    • Starrystarrynight1
    • By Starrystarrynight1 4th Mar 18, 3:05 PM
    • 193 Posts
    • 339 Thanks
    Starrystarrynight1
    Good luck with your PIP claim, OP. If you're successful with this, you'll get the cash backdated to the date your application was received. Might even be enough to pay off HMRC and put this awful experience behind you. x
    -------------------------------------------------------------------------------------------------
    I used to be Starrystarrynight on MSE, before a log in technical glitch!
    • Libbyd
    • By Libbyd 4th Mar 18, 9:14 PM
    • 47 Posts
    • 26 Thanks
    Libbyd
    Good luck with your PIP claim, OP. If you're successful with this, you'll get the cash backdated to the date your application was received. Might even be enough to pay off HMRC and put this awful experience behind you. x
    Originally posted by Starrystarrynight1
    Thank you.

    That's what I am hoping, if I am awarded it then the backpay will definitely be used to clear HMRC. I want that stress out of the way for sure. Then PIP will help me going forward I hope. I just pray I am successful, it's been going on since last July. Apparently it's still with a medical assessor and all I can do is wait. It definitely is a long process.

    Lib
    • AdamBrunt
    • By AdamBrunt 25th Mar 18, 9:14 AM
    • 315 Posts
    • 67 Thanks
    AdamBrunt
    No, don't wish that.
    You've had a suggestion of a 0% credit card, which I think is the right answer.
    Originally posted by JimmyTheWig
    But there was a subsequent post saying HMRC no longer taker credit card payments - which I find difficult to believe.

    We are in a similar position to the OP - just received the letter saying we were overpaid Child Benefit since 14/15. We have no problem paying it but, like others have posted on here, it seems completely crazy that HMRC can get away with not having to inform people they will be liable to the charge (since they know who those people are) but rely on said people informing them.

    A sensible country/government, of course, would have the benefit and tax people in the same department and all talking to each and knowing all this informaction via your NI number
    • Darksparkle
    • By Darksparkle 25th Mar 18, 9:25 AM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    But there was a subsequent post saying HMRC no longer taker credit card payments - which I find difficult to believe
    Originally posted by AdamBrunt
    It's true, stopped in January. They could no longer pass bank charges for processing personal credit card payments onto the taxpayer so have stopped accepting it.
    • AdamBrunt
    • By AdamBrunt 25th Mar 18, 9:34 AM
    • 315 Posts
    • 67 Thanks
    AdamBrunt
    It's true, stopped in January. They could no longer pass bank charges for processing personal credit card payments onto the taxpayer so have stopped accepting it.
    Originally posted by Darksparkle
    Oh, no.

    Not sure how he can are going to pay it in that case - if it leaves the only option of paying it back to them over 12 months.

    I am also struggling to find any documentation about Child Benefit for years [ can't find any recent Child Benefit award notices either ] and neither I, nor my wife, can remember filling in the Child Benefit form for years but the payments do appear on the bank balance
    Last edited by AdamBrunt; 25-03-2018 at 9:38 AM.
    • John-K
    • By John-K 25th Mar 18, 9:35 AM
    • 654 Posts
    • 1,009 Thanks
    John-K
    But there was a subsequent post saying HMRC no longer taker credit card payments - which I find difficult to believe.
    Originally posted by AdamBrunt
    Why? If you owe X to the government they are not going to accept less than that to pay the credit card fees.

    On your other point, it has always been the case that you are responsible for your own finances. The government gives a huge amount of help to some people via PAYE. It that never absolves you of your responsibility to know for yourself what you are due, and what you owe.
    • AdamBrunt
    • By AdamBrunt 25th Mar 18, 9:51 AM
    • 315 Posts
    • 67 Thanks
    AdamBrunt
    Why? If you owe X to the government they are not going to accept less than that to pay the credit card fees.
    Originally posted by John-K
    So, they just pass the fees on to the person trying to pay them surely ? It is not exactly rocket science is it ? But then we are talking about a Tory government
    Last edited by AdamBrunt; 25-03-2018 at 9:58 AM.
    • Darksparkle
    • By Darksparkle 25th Mar 18, 9:58 AM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    Oh, no.

    Not sure how he can are going to pay it in that case - if it leaves the only option of paying it back to them over 12 months.

    I am also struggling to find any documentation about Child Benefit for years [ can't find any recent Child Benefit award notices either ] and neither I, nor my wife, can remember filling in the Child Benefit form for years but the payments do appear on the bank balance
    Originally posted by AdamBrunt
    Does your credit card offer 0% money transfer?
    • AdamBrunt
    • By AdamBrunt 25th Mar 18, 10:07 AM
    • 315 Posts
    • 67 Thanks
    AdamBrunt
    Does your credit card offer 0% money transfer?
    Originally posted by Darksparkle
    Yes - but where would you be transfering the money from. Balance transfer cards only allow transfers from other credit/store cards don't they ?
    • Darksparkle
    • By Darksparkle 25th Mar 18, 10:16 AM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    Yes - but where would you be transfering the money from. Balance transfer cards only allow transfers from other credit/store cards don't they ?
    Originally posted by AdamBrunt
    Balance transfers yes but money transfers go to your account.
    • sheramber
    • By sheramber 25th Mar 18, 11:44 AM
    • 4,670 Posts
    • 3,503 Thanks
    sheramber
    Oh, no.

    Not sure how he can are going to pay it in that case - if it leaves the only option of paying it back to them over 12 months.

    I am also struggling to find any documentation about Child Benefit for years [ can't find any recent Child Benefit award notices either ] and neither I, nor my wife, can remember filling in the Child Benefit form for years but the payments do appear on the bank balance
    Originally posted by AdamBrunt
    You only fill in child benefit claim once, when the child is born.
    • Darksparkle
    • By Darksparkle 25th Mar 18, 1:20 PM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    So, they just pass the fees on to the person trying to pay them surely ? It is not exactly rocket science is it ? But then we are talking about a Tory government
    Originally posted by AdamBrunt
    As I said, they can no longer do that. That's why they no longer accept credit cards.
    • AdamBrunt
    • By AdamBrunt 25th Mar 18, 1:23 PM
    • 315 Posts
    • 67 Thanks
    AdamBrunt
    You only fill in child benefit claim once, when the child is born.
    Originally posted by sheramber
    True.

    But you are also meant to get a letter every year, afterwards, telling you how much you will be getting. We haven't had any of those for years.
    • Darksparkle
    • By Darksparkle 25th Mar 18, 1:34 PM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    True.

    But you are also meant to get a letter every year, afterwards, telling you how much you will be getting. We haven't had any of those for years.
    Originally posted by AdamBrunt
    Are you? I've never had one and wouldn't see the need.
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