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Paying back child benefit

(8 Posts)
BlogOnTheTyne Mon 13-Jan-14 14:19:20

I'm single, fully self-employed (which is the only household income) and will have to pay back child benefits received this year because my earnings are just in the too high category. Of course I know loads of couples who are not having to do this because whilst their joint earnings are massively higher than mine, new rules mean that I'll have to pay back and they won't.

Does anyone know when I'll get the bill and in the meantime, whether I should contact the child benefit office to stop further payments - presuming my current annual income is also too high (not yet sure)?

Will I have to pay the whole lump sum in one?

Loo16 Mon 13-Jan-14 14:30:38

You must fill in a self assessment tax return before 31 January and make payment otherwise you will be liable for penalties and fines. Have a look at HM Revenue &Customs website for more details. They will have a helpline you can call.

If you earn over £60k you will have to pay it all back, so would suggest you cancel it going forward if you don't want the hassle of paying it back.

CogitoErgoSometimes Mon 13-Jan-14 15:28:29

They don't send you a bill. It'll be an adjustment to your tax code. If you're 'just' in the too high category you may find the clawback doesn't cover all of it. I wouldn't cancel it if there's a chance your income could come down at any stage. Don't you fill in a SA already if you're self-employed?

LIZS Mon 13-Jan-14 15:33:56

The tax return due by the end of this month is for financial year April 2012-13. That would include 3 months of CB payments under the rule change. If you are only over the limit for this current tax year , ie. since April 2013, then you register for Self Assessment with HMRC (which you may already have done for Self Employment) and complete the return either on paper by October 2014 or online Jan 2015. If the situation is likely to continue you can ask for the payments to stop.

BlogOnTheTyne Mon 13-Jan-14 18:04:46

I completed my tax return today and indicated the bit about paying back child benefit but I don't think the sum was included in my tax due? Would it be obvious from the forms online or will I receive an extra bill in the post?

I think I won't know the exact tax due by 31st jan for 72 hrs post filling in my return online. So maybe it'll clarify on that?

I was just over the limit for that last tax year that I've just filed online. Every year varies. So I'm not sure yet about this current tax year.

So if it's just for 3 months of that last tax year, will it not be the total CB due back but only 3 months worth?

LIZS Mon 13-Jan-14 18:18:11

Did you go over the threshold even after deducting pension payments, charity donations etc if it's just for 3 months of that last tax year, will it not be the total CB due back but only 3 months worth correct. dh normally gets the amount owed at the end of completing it online and pays that by 31st then he gets a statement.

ihategeorgeosborne Mon 13-Jan-14 20:47:00

Dh completed a tax return just before Christmas for this CB claw back. As he is PAYE, he didn't have anything else to put on apart from the taxable pay on his P60 and the amount of CB we received in 2012 - 2013 tax year. The calculation at the end immediately told him what he had to pay extra as I think we had to pay back 60 - 70% for 3 dc. He ticked the box that enables HMRC to deduct extra every month next year. Just to double check DH phoned them yesterday and they said they would be deducting £32 a month from next April to recoup the money. Job done I think!

Splatt34 Mon 13-Jan-14 21:55:12

Did mine today. when i clicked to look at the tax calculation child benefit repayment was clearly shown in the calculation.

You say you've "just" earned too much. If you earned £52k but paid £2500 in pension contributions this will take you back under £50k and you'd keep it all.

Between 50&60k you keep some of it. As you are self employed & as your income varies I would continue to claim as you have to do a self assessment anyway, and may not need to pay it all back.

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