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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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!

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reluctantbrit · 11/09/2018 07:21

DH is over £60k so we pay it back completely each year with the self assessment. He has to do one anyway as he gets income from abroad every two years.

We keep the CB as I find it is necessary to get the woman’s pension calculation done correctly, I just do not trust anyone, especially the government, to get it right. The problem is that the CB counts often for the mother, earning less or nothing, regardless that it is the father who pays the money back

www.moneysavingexpert.com/news/2016/11/new-parents-lose-278m-in-state-pension-payments-due-to-child-benefit-changes/

We put the funds straight into an account

Namechanger1776 · 11/09/2018 07:37

My biggest concern right now is having to pay back a lump sum with no salary for Dh. The household income is £15k a year without him. His contract is up next week. We need every single penny.

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P3onyPenny · 11/09/2018 07:48

They’ll surely take that into account and let you do it gradually. It’s such a shit system.

dementedpixie · 11/09/2018 08:27

We claim child benefit but opt out of the payment so don't need to pay anything back. This still protects the NI credits

Namechanger1776 · 11/09/2018 09:50

It’s £6k they over half of it in 28 days. And we can’t pay it.

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Grobagsforever · 11/09/2018 18:46

@Namechanger1776 - how can you possibly owe them 6k from one year? You'd need yo have 10 kids surly?

Namechanger1776 · 11/09/2018 18:51

They are saying he should have paid higher tax charge year before when his ex wife was claiming. He shouldn’t though as they weren’t living together he was living at his mums. Because he was contributing to the house hold they are investigating.

We have to pay that back then, all of 2016-2017.

They will send us a letter with a breakdown. I am going to go to CAB. I’ve asked if we can pay some now then take the rest from PAYE.

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Grobagsforever · 11/09/2018 19:24

Oh god that's awful. Surely they'll see he's not responsible for previous year!

Sigh. I'm in the same boat in that I owe them for 2016/17, and will have to pay late fees. I only have two kids though so not so hefty. Makes me mad as I'm a lone parent earning just over 50k, a couple could each earn 49k and claim.

Good luck negotiating a payment plan. HMRC are usually very reasonable and have no motivation to place you in financial hardship

P3onyPenny · 11/09/2018 19:34

This system is insanity. It's all so stupid.How on earth can they expect him to pay for two? You can't live in two places at once.Confused

Rainagain1 · 11/09/2018 19:40

Yes I screwed up and claimed for too long. We had a week to pay back a huge amount. They fined us about 10% of the over claimed amount.

Namechanger1776 · 11/09/2018 21:11

We can’t do anything until we get the letter so am trying not to worry about it until then. Their initial advice was try borrowing off your friends and family.

Erm ok

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