Fine for forgetting to declare your income is too high for child benefit?

[Lostfraggle]

I’ve realised our income is too high to receive child benefit in the 2020-21 tax year (my income was over £60k), and was high enough that I should have paid the tax charge in 2019-20 (my income was c£55k that year).

I’m sorting it (have asked HMRC to stop paying me child benefit from now, have registered for a self-assessment tax return for the two previous years and pay back anything we owe), but does anyone know if we might get fined for forgetting to declare the 2019-20 income, and if so, how much? Looks like I might be ok if I do the self-assessment return for 2020-21 now.

Do you pay into a pension, as those payments will be taken off your net pay, possibly bringing your pay within the range and making you edible for CB or at least a portion of it. (There is a sliding scale)

Found this formula on the internet:

"An election may be made not to receive child benefit if so, the HICBC will no longer apply.

It is only worthwhile making the election if the adjusted net income of one partner is in excess of £60,000.

The charge is worked out according to a fraction:
ANI - L % x Child benefit received
X
Where ANI is adjusted net income for the tax year
L is £50,000, and
X is £100
So, if your income is £55,000 and you receive Child Benefit of £1,752, you will find that your tax charge is £876 (50% of £1,752).
Always round down to the nearest whole number.
This table shows you a step by step method which achieves the same result.
The charge applies on Child Benefit paid on or after 7 January 2013. The charge applies to a taxpayer with income over £50,000 per year if they or their partner are in receipt of Child Benefit in that tax year.
Where income exceeds £60,000 the effect of the charge is that all Child Benefit paid is repaid to the Government."

I earned £55k last year but my pension brought me under £50k so I think that means Im ok. I thought this year would be the same but unforseen bonus and promotion has taken me over 60k even with pension knocked off. I've cancelled it online but not actually sure what to do about the 3 months I received it before the payrise!

I had this happen and panicked. I was late doing the self assessment as I didn't know I needed to do one. HMRC were very helpful and I recieved no fine. Just told to crack on with the form and pay the money back.
I do feel a reminder of sorts would be useful. I'm assuming while I was on maternity leave and applied, there was some note about earning over 50k. At the time I went back to work I was part time in a more basic role. I changed jobs a few times after and that's where the problem lay but by then the note about earning over 50k was a distant memory!

@Wellthatsit

Do you pay into a pension, as those payments will be taken off your net pay, possibly bringing your pay within the range and making you edible for CB or at least a portion of it. (There is a sliding scale)

I do have a pension, but it’s through my employer, so from what I can work out, my contributions are taken before my salary is taxed, and so I can’t take it off my salary again for the purposes of calculating my salary for the child benefit calculation. I think…

@LifeBeginsNow - that’s reassuring. Did you have to ring them to argue against a fine? All I can find is “ignorance (or forgetting) is no defence” as I haven’t really got a good excuse apart from just forgetting, and only remembering it was a thing when I happened to be going though some old paperwork.

Re 2020/21 - look at your P60 - what amount is listed as taxable income? That's the relevant figure (after pension deducted).

Just checked my last P60 - the relevant box was marked with a star

@Peeeas - yes, it’s £55k (2019-20) then over £60k (2020-21), so I’m pretty sure I do need to do the self-assessment, and pay all of it back for 2020-21, and half back for 2019-20…

Okay - so your headline salaries for the relevant years are in excess of £55k and £60+? Yes to the SA, in plenty of time for the second of those. Not checked specifically for this, but usually for late filing of taxes HMRC fines £100 as a slap on the wrist, plus interest on the sum owed which is probably fairly minor. If they charge at all - can be a bit random re whether they issue fines.

@Lostfraggle no fine was sent or discussed. I only knew to do something when someone at work mentioned it. I nearly had heart failure when I found out. It was bad enough having to repay half the money but the worry of a fine too nearly sent me over the edge.
I just phoned HMRC and apologised. I explained how I wasn't earning much originally and that I couldn't remember from all of those years ago that this was a thing.
Hopefully you get someone understanding too!

@LifeBeginsNow - thank you- that does sound reassuring! Fingers crossed…