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Original poster

Freaking out about my tax bill - anyone got any idea why child benefit repayment would be so high?

49 replies

RiddleyW · 30/12/2019 11:14

I'm just submitting my tax return which I have to do because we claim child benefit despite earning over the threshold. Usually I just repay the whole amount paid (about £1000 I think, we just have one child) .

For some reason the payment due is coming out as £4k - has anyone else had this? I can only assume I've underpaid tax somewhere (I'm just PAYE so don't know how) but can't work out when/ how.

Was hoping there might be someone on with some experience of this!

OP posts:
lovemenorca · 30/12/2019 11:15

You have to ring hmrc. Simple as that.

Original poster
RiddleyW · 30/12/2019 11:16

They aren't taking calls today unfortunately.

OP posts:
ohwheniknow · 30/12/2019 11:20

Have you re-worked the calculations to find the discrepancy?

Have you checked your tax code to see what was included, if those figures are correct, and if it was the tax code your employer actually used?

I assume you've checked all your inputs are correct?!

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General money
JassyRadlett · 30/12/2019 11:21

How many kids do you have, and how much do you earn?

LIZS · 30/12/2019 11:22

Is the repayment £4k or is that the amount you are liable to pay tax on ie. 20%?

UncleMatthewsEntrenchingTool · 30/12/2019 11:22

You must have underpaid tax somewhere else. DM me the numbers and I’ll calculate the tax manually for you if you like (I am a Chartered tax adviser)

Original poster
RiddleyW · 30/12/2019 11:22

Inputs are all correct and tax code matches my payslips.

It's a very simple return which is why I'm confused. I just confirmed the numbers they already had (which matched my records) from PAYE.

I think I'm just going to submit it then talk to them when it's not so busy. What an arse though, it's so annoying.

OP posts:
lovemenorca · 30/12/2019 11:24

All hmrc offices are open today

Freaking out about my tax bill - anyone got any idea why child benefit repayment would be so high?
lovemenorca · 30/12/2019 11:25

I know because my bil has gone to work today there! Why would you fib?

ohwheniknow · 30/12/2019 11:26

Don't submit it if you know or suspect it's incorrect.

This £4k, what's the breakdown? Is it all showing as child benefit repayment?

darndifino · 30/12/2019 11:26

The self-assessment deadline isn't until the 31st January, calm down.

Cookit · 30/12/2019 11:29

Perhaps you have gone over the 100k threshold so have to start paying tax back at 60% which pays back the the tax free allowance which you are (incrementally) no longer entitled to? This threshold always messes up tax paid even if PAYE..

Or else your tax code must be wrong.. like maybe you’ve been paying at 20% level not 40% or 40% not 45%...?

Original poster
RiddleyW · 30/12/2019 11:31

I have one child and earned 117k last year.

There is no breakdown shown, the calculation page just says £4k owing for tax year 2018/19. I must have underpaid with PAYE (as well as the child benefit).

They are open but are not accepting calls - I assumed because they are so busy. You're right of course on the deadline I should probably just leave it and try them next week. I have a real "thing" about submitting by new year but that is stupid I know.

OP posts:
PhilCornwall1 · 30/12/2019 11:32

Yes! I've had exactly this! We have child benefit for two children and I'm over the 50k threshold. I put in all my figures and it's come out to over 4K owing. As far as I am concerned, I haven't underpaid tax for the 18/19 year as this is handled by my employer. I should have done before, but looking at last years P60, my total earnings are wrong, as in too much and I know I didn't earn that.

I've got the added fun of a company car, but have used the figures off my P11d as provided. I'm sending an email to payroll to find out what the heck is going on with my P60

I've had nothing but hassle over the last 4 months with tax. My car is now payrolled, so comes out of my salary, but HMRC gave me an incorrect tax code, so I was paying for that twice. Finally got sorted in Decembers pay.

I had to pay additional tax last year for CB, but that equated to just over £200, not 4 grand!! God knows what's going on now!!

We've decided here that we are going to stop CB, as this is all too much hassle.

Original poster
RiddleyW · 30/12/2019 11:34

Ah ok I think Cookit might be right then.

I don't mind paying it if that's what I owe, I just want to understand the basis so I know it's right.

OP posts:
Original poster
RiddleyW · 30/12/2019 11:36

We've decided here that we are going to stop CB, as this is all too much hassle.

I think we might do the same - we do it for the NI stamp for DH but I think I might just start paying the top up. I've always just been an employee and find this quite out of my comfort zone to work out!

OP posts:
PhilCornwall1 · 30/12/2019 11:37

Interesting that mine has come out at almost the same figure as you and my salary for that year was £51,500. They'll take into account the benefit for my car, which my P11d says is approx £5k.

ohwheniknow · 30/12/2019 11:39

You should be able to download the full calculation. I think it's where you can download a copy of the return. If your tax code included a personal allowance you're not entitled to that would explain the difference, though.

You can elect to claim CB but not have the cash paid out if you're doing it for the NI record. That way it saves you doing this but you don't have to pay voluntary NI contributions.

GeriAtric · 30/12/2019 11:40

As someone who earns nowhere near the threshold and doesn't understand these things, can I ask what the benefit is of claiming CB only to have to pay it back?

PhilCornwall1 · 30/12/2019 11:40

I've always just been an employee and find this quite out of my comfort zone to work out!

Totally out of mine too, I'm far from daft, but this is all beyond me at the moment.

UnaOfStormhold · 30/12/2019 11:42

As I understand it your partner can register for CB but not receive it and will still get the NI credit but without the hassle of having to receive and pay back.

ohwheniknow · 30/12/2019 11:43

GeriAtric it gives you an NI contribution for the year towards state pension etc.

Simpler option is to elect to claim CB but for the cash not to be paid for you.

No repayment to deal with but still receive the NI credit.

FlipperSkipper · 30/12/2019 11:43

You can claim the NI contribution only, when you apply there’s a box to tick for NI only, not sure how you do it if you’re already claiming.

CmdrCressidaDuck · 30/12/2019 11:43

can I ask what the benefit is of claiming CB only to have to pay it back?

You get NI credits which can be helpful if you are a SAHM or on maternity leave, and it means your child gets their NI number automatically. That's about it though. It's easier IMO to register for CB but choose for it not to be paid at all (which I do) than faff about getting it but then having to pay it all back.

PhilCornwall1 · 30/12/2019 11:44

can I ask what the benefit is of claiming CB only to have to pay it back?

You may well ask! Until I got landed with this, my understanding was that if you were £60k or more you didn't get it. For years it was never an issue for us, so when I hit £50k as a salary, I never considered it an issue.

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