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Didn't complete self-assessment for 2014-15 (child benefit charge) HELP

(1 Post)
originaldoozy Wed 28-Sep-16 00:24:37

I will try to keep this brief whilst being clear.

DS born in August 2014. Before deciding whether to claim child benefit we did the calculator to see if we would have to pay any back as DH's salary is just over £50,000. Calculator showed we wouldn't have to pay any back as taxabke income lower than this after pension etc. Applied for CB and received for remainder of tax year. Did not register for self assessment or do tax return based on the calculations done (and no change in salary).

Pay rise since this date and so we looked at calculator again today and registered for self assessment expecting to have a small amount to pay back for 2015-16 year. Looking at P60 turns out we don't as taxable pay still lower than £50,000. Curious to see the difference from last year considering the pay rise we looked at last years P60 and it actually showed taxable pay of just over £50,000 which calaculator shows would have meant needing to do self assessment and pay back £60. Further digging shows us that DH received a £4000 one off payment in Dec 2014 as a buyout of certain rights in his employment contract. We didn't even consider at the time that this would be then seen as part of his taxable pay for that year.

So long story short .... we have now realised 8 months after the deadline for payment of this (let alone the earlier deadline for registering for self assessment in the first place) that we did in fact owe HMRC some money for the 2014-15 year. Looking at the website and entering the details shows we could now face a £1300 bill for late payment. shock

So my question ... will they really enforce such a massive late payment charge on us for a genuine mistake on our part? Has anyone else been in a similar situation? Any advice at all on what to do now??

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