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High income child benefit charge

carly burncarly burn
in Not Sports Related
Anyone else been hit with this recently?

Just checked mine and reckon I owe the HMRC somewhere around £1200 notes?

Right before Xmas. Great.

I've got to do a self assessment now which is something I've never had to do before.

Will they want it in one lump?
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Comments

  • BaldybonceBaldybonce
    Sure it’s not a scam?
  • McBobbinMcBobbin
    edited December 2019
    They are always mucking about with this, stopped getting it a couple of years ago, bit but was in a sweet spot where I was entitled to some, not all, but the difference had to be sorted by doing a self assessment form. Pain in the bum. Btw I think they were able to sort out the difference through my tax code because it was below a certain amount, so I didn't have to cough up at the time, I'd already paid it
  • BedsaddickBedsaddick
    Despite NOT being self employed i've had to fill out a tax forms every year since they brought this in because of recieving child benefit . The forms are easy , its only a couple of pages but so many people have be caught out. I know people who have forfeited getting it just because of the complications this stupid rule produces. 

     Bloody Tories
  • ValiantphilValiantphil
    A few years back this happened to a pal. They wanted a chunk back and he told them (by letter) it was their fault they overpaid him and he didn’t have the money to repay. 
    He never heard anymore about it. 
  • carly burncarly burn
    Am I right in thinking the contributions I make to my company pension can be used deducted from my income when doing the calculation hence bringing it down?
  • BedsaddickBedsaddick
    carly burn said:
    Am I right in thinking the contributions I make to my company pension can be used deducted from my income when doing the calculation hence bringing it down?
    The forms don’t even ask about pensions . It’s all based on your yearly salary before tax .
  • Rob7LeeRob7Lee
    Depends how you pay your pension, but ultimately yes, also don't forget charitable giving/gift aid donations.
  • StigThundercockStigThundercock
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
  • bobmunrobobmunro
    StigThundercock said:
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
    Assuming employed paying PAYE tax then as long as the total owed is less than £3,000 you can request that they adjust your tax code for the following year so that it is collected over the 12 months rather than all at once.
  • carly burncarly burn
    StigThundercock said:
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
    Thanks. Was on the phone to the HMRC most if the day yesterday. The 3 people I spoke to said that arrangements can be made for the payment. I said  coughing up 1200 straight after Christmas was not going to be possible. After all, They only informed me about this charge at the weekend! I never knew it existed.

    Get this. A single earner in a family with kids has to start paying this back for every £100 they earn over 50k

    A family with both parents earning £49999 each don't have to pay back a penny.

    It's outrageous.
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  • McBobbinMcBobbin
    bobmunro said:
    StigThundercock said:
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
    Assuming employed paying PAYE tax then as long as the total owed is less than £3,000 you can request that they adjust your tax code for the following year so that it is collected over the 12 months rather than all at once.
    I did this... Probably not something you can figure out from my explanation! I think there is a tick box in the self assessment form
  • CatAddickCatAddick
    edited December 2019
    carly burn said:
    StigThundercock said:
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
    Thanks. Was on the phone to the HMRC most if the day yesterday. The 3 people I spoke to said that arrangements can be made for the payment. I said  coughing up 1200 straight after Christmas was not going to be possible. After all, They only informed me about this charge at the weekend! I never knew it existed.

    Get this. A single earner in a family with kids has to start paying this back for every £100 they earn over 50k

    A family with both parents earning £49999 each don't have to pay back a penny.

    It's outrageous.
    That's what pissed me off.  I was one of the ones who gave up and said 'nah, don't bother' cos it was too complicated to work out (at both ends) as me and HMRC were continually trading overpayments.  I was the single income high earner and wifey was stay at home child caring and we ended up claiming nothing.  Other couples had >70% more family income than us and were getting full child benefit too!!  
  • RizzoRizzo
    Basically you lose 1% of your child benefit for every £100 over £50k that you earn. So by £60k you are no longer entitled to it. But rather than just deduct it from the payments you receive they give you the full amount and then claim the rest back in tax. Except they don't even do that automatically and they just send you a tax demand months later. 

    System really working well! 
  • SporadicAddickSporadicAddick
    carly burn said:
    StigThundercock said:
    If you owe money for tax year 18/19 (up to 5/4/19) the balance is due by 31/01/20, yes they'll want it all by then, in practice so long as you settle it all by 27/02/20 they'll just add a few quid interest and that'll be the end to it.  If you have to complete a tax return form, be sure to get that in on time (31 Jan online, already too late for paper option), if the return is late it'll definitely automatically cost you more, starting at £100.
    If you owe money for the current tax year 19/20 (to 5/4/20) any balance will be due by 31/01/21 - if you complete that tax return by December 20 you might get to settle the bill through your tax code through the following year - delaying the cost even further.
    If the whole thing scares or confuses you, talk to an accountant, couple of hundred quid buys immeasurable peace of mind and you can carry on earning the sort of wedge needed for this to be an issue in the first place.

    Company pension scheme payments through salary - Unlikely make any difference
    Personal pension payments paid directly - Maybe relevant
    Thanks. Was on the phone to the HMRC most if the day yesterday. The 3 people I spoke to said that arrangements can be made for the payment. I said  coughing up 1200 straight after Christmas was not going to be possible. After all, They only informed me about this charge at the weekend! I never knew it existed.

    Get this. A single earner in a family with kids has to start paying this back for every £100 they earn over 50k

    A family with both parents earning £49999 each don't have to pay back a penny.

    It's outrageous.
    The whole process from day 1 has been a farce - a universal credit that became means tested. I no longer receive child benefit for my kids - I know that some people will see that as fair enough if you are earning above a certain level, but this catches higher middle income earners in a pretty unfair way (The £49,999 example above).  

    Without creating an EU in / out debate, I still struggle to see why I, having paid into the pot for over 25 years, lost the benefit for my children, whilst a fellow EU citizen can, to the best of my knowledge, work in the UK, pay tax and claim child benefit for dependents that have never been to the country.

    I'm sure there are caveats and good reasons, I just can't think of them.


  • Rob7LeeRob7Lee
    It's been a bit of a bizarre situation since it came in. Until recently (well may be 2 years) if you weren't the receiver of the benefit you weren't allowed to find out if your partner was claiming it due to data protection.
    It is unfair that one income at 60k gets nothing but two of 49k each gets it in full. But thats how's it's been since they brought it in, I think in 2013.

    My wife still claims it and I pay it back, sort of an interest free loan from the Government!
  • CharltonparklaneCharltonparklane
    We havent claimed anything for over 4 years now as I was hit with a repayment thing off the cuff about 6 years ago, was a ballache and they can poke their 50%  they give us we payback, absolute farce, just give us 50% less for christ sake.

    STILL 4 years on I have to do a tax return having never been self employed or unemployed for 25 years.
  • Rob7LeeRob7Lee
    It wasn't a well thought out tax as predominantly it is the person NOT receiving it who has to pay it back (this originally it was something like 85%). If your partner doesn't work claiming it makes sure their NI is paid and uptodate which is about the only good part about it.
  • golfaddickgolfaddick
    Tell me about it. Ex-wife used to get this for our 3 kids along with working tax credit & my maintenance (£600 pm). Kids now all living with me I get bugger all. Earn just over the £60k cap. To add salt into the wound ex-wife is "off sick" and not working......so gives me bugger all maintenance. 

    Worked since age 16 (started work 3 days after my final O level) & never claimed anything. So those waspie women can fuck off as well. My pension age has been "pushed back" too.....but I'm not out there protesting about it.

  • guinnessaddickguinnessaddick
    Off_it said:
    golfaddick said:
    Tell me about it. Ex-wife used to get this for our 3 kids along with working tax credit & my maintenance (£600 pm). Kids now all living with me I get bugger all. Earn just over the £60k cap. To add salt into the wound ex-wife is "off sick" and not working......so gives me bugger all maintenance. 

    Worked since age 16 (started work 3 days after my final O level) & never claimed anything. So those waspie women can fuck off as well. My pension age has been "pushed back" too.....but I'm not out there protesting about it.

    I know a bloke who can give you some decent advice if you need it mate?
    Don’t park in the car park at Charlton park when attending matches at The Valley.
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  • Rob7LeeRob7Lee
    @golfaddick your still on the fence then re WASPI and child allowance removal  :D
  • golfaddickgolfaddick
    Rob7Lee said:
    @golfaddick your still on the fence then re WASPI and child allowance removal  :D
    One thing with me.....I never sit on the fence. Always black or white. 
  • WheresmeticketWheresmeticket
    Ridiculous that benefits are available at all for people in these wage brackets. In my opinion obvs.
  • golfaddickgolfaddick
    Wheresmeticket? said:
    Ridiculous that benefits are available at all for people in these wage brackets. In my opinion obvs.
    Until a few years ago it was paid to EVERYONE........so even The Beckhams would have had it paid to them (when living in the UK obvs). Like the winter fuel payment. That is paid to everyone over a certain age (80?). I agree  some benefits should be means tested......but as a pp said, a couple earning £49999 each will get it, a single parent earning £60k wont.
  • WheresmeticketWheresmeticket
    golfaddick said:
    Wheresmeticket? said:
    Ridiculous that benefits are available at all for people in these wage brackets. In my opinion obvs.
    Until a few years ago it was paid to EVERYONE........so even The Beckhams would have had it paid to them (when living in the UK obvs). Like the winter fuel payment. That is paid to everyone over a certain age (80?). I agree  some benefits should be means tested......but as a pp said, a couple earning £49999 each will get it, a single parent earning £60k wont.
    That's definitely inequable.

    Should be sliding scale with cutoff well below that.
  • LargeAddickLargeAddick
    golfaddick said:
    Wheresmeticket? said:
    Ridiculous that benefits are available at all for people in these wage brackets. In my opinion obvs.
    Until a few years ago it was paid to EVERYONE........so even The Beckhams would have had it paid to them (when living in the UK obvs). Like the winter fuel payment. That is paid to everyone over a certain age (80?). I agree  some benefits should be means tested......but as a pp said, a couple earning £49999 each will get it, a single parent earning £60k wont.
    Winter Fuel Payment is paid once you reach pensionable age, so 65/66/67.
  • Covered EndCovered End
    In a country with an ever increasing population and a serious lack of housing, you have to question the sense in paying child benefit at all.

    It would of course be a serious vote loser to remove it.
  • HandGHandG
    edited December 2019
    If you complete the form online by 30th December I thought they take the tax owing out of your income over the next 12 months? I missed that deadline last year and had to pay a lump sum which was a real pain especially given that I have four kids. It’s been a killer on pay rises over the last few years too as any increase has been eaten up by the loss on the child benefit. Thankfully this should be the last year I have to do it....
  • WheresmeticketWheresmeticket
    Covered End said:
    In a country with an ever increasing population and a serious lack of housing, you have to question the sense in paying child benefit at all.

    It would of course be a serious vote loser to remove it.
    I don't think removing child benefit would stop people breeding. It would just mean that poorer children would be poorer still.
  • Covered EndCovered End
    Wheresmeticket? said:
    Covered End said:
    In a country with an ever increasing population and a serious lack of housing, you have to question the sense in paying child benefit at all.

    It would of course be a serious vote loser to remove it.
    I don't think removing child benefit would stop people breeding. It would just mean that poorer children would be poorer still.
    I have seen plenty of documentaries where people have said they have more kids for the extra benefits they get.
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