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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask if you had to pay tax penalty on Child Benefit

61 replies

Namechanger1776 · 10/09/2018 20:48

And if so how did HMRC take the payments from you. I think we have to pay for last year. My fault. We just moved in together and today we got a letter asking for info.

Help!

OP posts:
Original poster
Namechanger1776 · 10/09/2018 21:48

We just had a big argument he is angry that he has to be penalised for 3 children that aren’t his. Well that’s fucking nice to know.

OP posts:
dementedpixie · 10/09/2018 21:50

Charming!

Fullofthought · 10/09/2018 21:55

You will probably be on UC and will only Have 2 children paid for when you are on it. Also every £1 you earn over £ 198 will reduce your benefit payment by 63p. The child benefit people can request that it be deducted out of any payments you get from other benefits so once you have signed up it's not in your control so to speak how much you pay back each month

Original poster
Namechanger1776 · 10/09/2018 21:56

Because my dd gets DLA I was told it was still tax credits in my area.

OP posts:
SocksRock · 10/09/2018 22:09

He can be as angry as he likes, but he (and not you) is liable for the charge and it needs to be paid. If he can negotiate with them, you can do it in an affordable way and work it out together. If the benefits are in your name, I don’t think they can force a deduction from your money for his debt

SocksRock · 10/09/2018 22:09

Your best bet is to negotiate directly with HMRC.

Fullofthought · 10/09/2018 22:10

You are one of the lucky ones. UC is in most areas now. I work on it. Getting DLA will not make a any difference. If UC is in your area your on UC. DLA is a benefit that doesn't effect UC though you would be glad to know. Do you get carers allowance that is deducted pound for pound if you do.

BlitheringIdiots · 10/09/2018 22:11

I have to pay back about 50% each year. I keep claiming it and just pay as part of my tax return money. I will always claim it even if have to pay back 100% one year

Original poster
Namechanger1776 · 10/09/2018 22:12

He will call them tomorrow while I am there and speak to them. I’m thinking that we should just opt out of them going forward.

If his job goes I would have to claim tax credits not him.

OP posts:
Fullofthought · 10/09/2018 22:13

If you live together then you have to make a joint claim be that for tax credits or UC. Please do not not put him on the claim or you will be committing fraud. And will get civil penalties as well as overpayment it worse.

Original poster
Namechanger1776 · 10/09/2018 22:13

I put my address in but because I have 3 children it is still considered tax credits not uc. I don’t ger carers allowance

OP posts:
dementedpixie · 10/09/2018 22:16

Is it not a change of circumstances that can cause a move to universal credit? My sister still gets tax credits until a change of circumstances forces a change to universal credit

Fullofthought · 10/09/2018 22:19

Forced migration of everyone to UC will be by the end of 2020. Tbh look at UC you may find your better off by being on it. I work on UC and receive it myself and it's more than I got on tax credits.

dementedpixie · 10/09/2018 22:21

I have just read it's March 2023 for the migration to be completed. A lot of people are worse off on UC

Original poster
Namechanger1776 · 10/09/2018 22:22

Fullof so every £1 on uc or tc over £198 would be reduced to 47p so that would dramatically cut whatever we have coming in. God it’s stressfuk!

OP posts:
SocksRock · 10/09/2018 22:26

There are some online calculators that can do a TC and a UC claim and compare how well off you will be. Might be worth have a look at?

Fullofthought · 10/09/2018 22:43

Talking from experience 8/10 people I speak to on a daily basis are better off.

Lolapusht · 10/09/2018 23:26

Don’t stop claiming CB....keep claiming but refuse the payments!!! If you stop claiming then you lose NICs which will effect the amount of state pension you are entitled to.

We were in a similar situation and were going to stop claiming, then I saw a very useful post on MN!! I contacted HMRC via WebChat and sorted it out that way.

www.gov.uk/government/organisations/hm-revenue-customs/contact/child-benefit

If you stop claiming then you will lose the NICs which will affect your pension

Original poster
Namechanger1776 · 11/09/2018 06:26

Can they claim the money back through the payments by reducing them?

OP posts:
Namechanger2015 · 11/09/2018 06:38

I had to pay back - I earned over £50k this year which I hadn’t done before (self employed). I didn’t know about the CB cut-off, sent off my self-assessment and got a very polite letter fe HMRC stating that it’s a common mistake and I owed them £2k which I paid online. All sorted. Don’t panic, they are very friendly.

Good point about not stopping CB, I will need to do that I think.

P3onyPenny · 11/09/2018 06:43

Don't stop claiming whatever you do. Going forward we pay the CB into an account and the tax bill from that as can be all over the place with OT. It's insane. I can see why your partner is cross if he didn't spend the CB but is paying it back. Diff if you have joint account and he has helped to spend it.

The system stinks in every way.

Original poster
Namechanger1776 · 11/09/2018 06:53

Name changer did you have to pay back in one lump sum?

OP posts:
P3onyPenny · 11/09/2018 06:58

I'm slightly confused re the pension thing mentioned. Are people saying you take off what your company takes out as pension from your overall yearly salary figure?Dp says the website does it all for you and is very easy but I'm wondering if we've overpaid( one can but hope). Confused

P3onyPenny · 11/09/2018 07:17

Don't pay it off with a CC as they charge interest.

P3onyPenny · 11/09/2018 07:17

HMRC

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