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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be pissed off about paying back child benefit

560 replies

pinotnow · 05/02/2023 16:56

I am in a sector that was awarded a pay rise this year - though our union is fighting for a higher one. The rise was from September but our school (yes, it's teaching) didn't pay it until November when we got months at once. HR always send us a pay statement at this time of year and I have just opened mine and seen I am now on approx £52k (been teaching 18 years and am head of a core subject in a large secondary school). I understand I now have to pay back some of my child benefit. This is a pisser as things are pretty tight and I'm a lone parent who gets no CM (ex is a total waste of space - I've gone through CMS). Also, I wasn't expecting it this year (I was on £49k last year and now I'm worried I've missed some sort of deadline for paying it back as technically I've been on this for 5-6 months, but only just realised.

I really haven't got the head space for this now and a quick Google has just brought confusion. As soon as you move forwards a bit in this shithole country you move backwards it seems. Any advice would be great!

OP posts:
ditalini · 05/02/2023 17:14

When you get your P60 for this year you can see your pension contributions figure and it will give you a total with this subtracted as your taxable pay.

The tax year isn't over so HMRC won't be after you for anything yet. You may have to pay back a little bit or it all, but not until you have confirmed figures.

Boysnme · 05/02/2023 17:15

I was in this situation, husband not working due to ill health and had to pay it back. I just saved a portion of it and did a self assessment tax return to pay it back which after pension was very little that needed paying back.

doadeer · 05/02/2023 17:15

It's an odd system where it's means tested on one parent, but the household income could be higher. If one parent is a carer for a disabled child but one earns over £60k, this doesn't necessarily mean you're flush if you live south east.

Porkandbeans1 · 05/02/2023 17:16

From entitled to "The income definition used to work out the Child Benefit charge is the same as the income definition in the tax system. Broadly this is your gross earnings minus any pension contributions and other deductions such as Gift Aid. Your P60 should include a line for your taxable earnings, and if you have no other income this is your best guide to whether you have a taxable income over £50,000 and are affected by the charge."

yumscrumfatbum · 05/02/2023 17:18

This happened to us too. DH had a bonus and did a load of overtime. We didn't know about the +£50 000 rule. Was made very clear to us that ignorance is no defence. We were able to set up a payment plan to repay it.

fairypeasant · 05/02/2023 17:22

It's pissing shit. One household can have £98k coming in, and keep all CB, another £60k coming in, and lose it. I dropped my hours because childcare and losing CB meant it cost me to work.

Original poster
pinotnow · 05/02/2023 17:25

So it doesn't look like I owe anything at the moment as a result of the pension contributions. But when does the tax year run from? I thought it was April-April but seeing references to October? Also, I do exam marking so I suppose that is no longer as lucrative as will have to watch that it doesn't take me over, which is difficult as you don't actually know how much you have earnt until you get it. In addition, I have just been promoted. I think my new pay will not come into force until the March payslip, or even if it does make February it won't be the full month. It just feels like as soon as I have done something to improve my situation, it starts being taken away...

Sympathy to anyone else in similar position!

OP posts:
daffodilday · 05/02/2023 17:27

To call the UK a shit hole for giving you free money for producing a child is laughable. The country does not owe you money because you decided to have a child.

Chevyimpala67 · 05/02/2023 17:27

I hear you op.
Dh had 2 pay rises a few years apart few years ago...we were worse off after both.
It's shit.
And couples bringing in £100k ke CB!

minihitch · 05/02/2023 17:28

I'm pretty sure your pension payments will take you under

MajorCarolDanvers · 05/02/2023 17:29

Here is a calculator so you can work out what you pay

www.gov.uk/child-benefit-tax-calculator

You will need to complete a self assessment tax claim next year.

minihitch · 05/02/2023 17:30

I personally think CB should be universal

ditalini · 05/02/2023 17:32

1st April to 31st March.

TroublesomeLuck · 05/02/2023 17:32

Your p60 should show your taxable income (which is your gross salary less pension contributions).

Tax year runs from April - April so if, say you earn more than 50k after pension conts this year, you'd need to worry about that in the tax return due on 31 January 2024. Then if you filed that pre 31 December they'd incorporate the underpayment in your tax code so a bit would be paid back every month.

And you won't pay back the whole lot, if you earn eg 51000 then you have to pay 10% of the CB back, 52000 it's 20% etc etc. Once you've got it in your tax code and you regularly file Tax Returns it's not that difficult.

Finally, if you're a teacher, have you got your union subs in your tax code? If you haven't you can Google how to get that incorporated to a) make things better going forward, but b) get a tax rebate for earlier years.

Oblomov23 · 05/02/2023 17:34

Please don't worry about it, at all. It's all manageable. HMRC will contact you if they want you to submit a tax return, higher tax payer re CB. It's a sliding scale and Dh, because of pensions, only had to pay back a small amount £47 one year £18 the next.

plumduck · 05/02/2023 17:35

Get a worse paid job then.

Chevyimpala67 · 05/02/2023 17:36

minihitch · 05/02/2023 17:30

I personally think CB should be universal

As David Cameron vowed it would be before the 2015 GE!

lanthanum · 05/02/2023 17:36

You will probably need to do a tax return for the 22/23 tax year (which is actually quite quick and easy nowadays), but it's very likely that your pension contributions will bring you below the £50k, and if not, it would only be a small fraction that is clawed back. For the year from April to March, you wouldn't have been on £52k for all of it, either.
No worries about having missed anything, as the last tax year was fine. Just register for self assessment - you can put the form in between May and the end of the year, and you're sorted. Don't forget that you can also set a proportion of your union subs against tax, too.

GrunkleStan · 05/02/2023 17:37

SweetSakura · 05/02/2023 17:03

Is that your gross pay?
After pension contributions you may find you are still below the threshold

This

Additionally, if you are still over £50k when your pension contributions are taken off, could you set up AVCs to get under the amount.

dementedpixie · 05/02/2023 17:37

Oblomov23 · 05/02/2023 17:34

Please don't worry about it, at all. It's all manageable. HMRC will contact you if they want you to submit a tax return, higher tax payer re CB. It's a sliding scale and Dh, because of pensions, only had to pay back a small amount £47 one year £18 the next.

Hmrc will not automatically contact you so I wouldn't rely on that. The onus is on the higher earner to realise they need to complete a tax return if they earn over £50k in a particular tax year

LocalHobo · 05/02/2023 17:38

To call the UK a shit hole for giving you free money for producing a child is laughable. The country does not owe you money because you decided to have a child.
I think your 'total waste of space ex' is the real shit in this situation, not the UK taxpayer.

WalkingThroughTreacle · 05/02/2023 17:39

Take a breath OP. I get that you're mad and I understand why but you'll get further by being calm and looking for possible solutions than getting yourself stressed over it. Anything you can do by way of salary sacrifice can bring you down below the threshold or at least reduce your liability. That depends on what options your employer has but common ones are pension payments, bike-to-work, some share plans or extra holiday allowance.

It really is a shit system and very unfair but it doesn't look like it's going away anytime soon so better to find ways to mitigate against it if you can.

MajorCarolDanvers · 05/02/2023 17:39

Oblomov23 · 05/02/2023 17:34

Please don't worry about it, at all. It's all manageable. HMRC will contact you if they want you to submit a tax return, higher tax payer re CB. It's a sliding scale and Dh, because of pensions, only had to pay back a small amount £47 one year £18 the next.

They really won't. It's the tax payer's responsibility

LIZS · 05/02/2023 17:41

Probably you won't after pension deductions but you will need to register for self assessment with hmrc as a potential hr tax payer.

LucyWhipple · 05/02/2023 17:41

It’s frustrating isn’t it but on £52k as long as paying into your teacher’s pension you won’t need to pay anything back yet. And even once you do it won’t be the full amount.

The single parent / 2 parent household thing is unfair and I say that as someone who benefited from it a lot in a 2 parent equal earners household.