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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

There’s no way we need to pay back this much?

66 replies

Jobseeking · 12/01/2024 16:57

child benefit,

so it’s dh, and I think he’s got this wrong

gross income (bonus, salary etc etc) £62000
gross pension paid £8487

total child benefit claimed £1885 (2 kids)

amount owed in self assessment tax return £2243.

surely this isn’t right? Husband is PAYE employee so tax is deducted at source and he’s not had any coms stating other wise from hmrc. Where as me, when I moved up a pay bracket, for a letter straight in the post advising I’d not paid enough tax.

can anyone help with this?

OP posts:
Harrysmummy246 · 12/01/2024 18:03

Op, it's also possible to opt to not receive the CB whilst still receiving your NI contributions. That's what we did as DH taxes are ridiculously complicated enough without having that to add in too

Original poster
Jobseeking · 12/01/2024 18:03

WhatsitWiggle · 12/01/2024 17:40

It's salary net of gift aid and pension contributions, and it's maxed at 100%.

Sounds like something else going on - have you savings that you've earned interest on? I got caught this year, once you trip into higher tax bracket you can only earn £500 interest tax free not £1000, and with interest rates high, suddenly you can find yourself earning decent interest in your savings instead of the pennies we've had for years!

No nothing like that either which is why it’s so confusing, I’ll get him to call Monday

OP posts:
modgepodge · 12/01/2024 18:04

MiIz · 12/01/2024 17:22

I think it might be right, because for every £100 he earns over £50000 its 1% paid back. So he has earned £12k over that which equals 120% pay back. 120% of £1885 is £2262, which is pretty much what he's been asked to pay. It seems mad to pay back more than what you received though, but maybe this is just what they do to encourage you not to have claimed it while he's on that salary?

This is definitely not correct. You don’t have to pay back more than you claimed!! That is not how it works.

Theoretically once you go over £60k you have to pay it all back, but I think pension and stuff would be deducted. Im not completely sure how it works but if the OP is right and he earns £54k once his pension has been deducted then I think they’d be able to keep 4/10 of what has been paid for that year.

Original poster
Jobseeking · 12/01/2024 18:04

Harrysmummy246 · 12/01/2024 18:03

Op, it's also possible to opt to not receive the CB whilst still receiving your NI contributions. That's what we did as DH taxes are ridiculously complicated enough without having that to add in too

How do you do that? Because that’s the only reason why we still have it

OP posts:
Original poster
Jobseeking · 12/01/2024 18:07

LumpyPumpkin · 12/01/2024 17:26

Only certain types of pension contribution are taken in to account for calculating the High Income Child Benefit Charge and most standard work place pensions don't count as they're taken pre-tax.

Best to call HICBC or income tax helpline to see what type of pension contributions have gone through Pay As You Earn and whether they can be deducted.

Assuming pension is not deductible, and earnings are considered as £60,000+, the full amount of child benefit is due back.

Your partner might have underpaid tax elsewhere throughout the year which would be the difference between the child benefit amount owed and your partner's tax bill.

Perhaps that’s what it is? So it’s standard work place pension with employer standard contribution and then an additional Match contribution

OP posts:
modgepodge · 12/01/2024 21:30

Jobseeking · 12/01/2024 18:04

How do you do that? Because that’s the only reason why we still have it

Show quote history

It’s a tick box somewhere. Call them and ask. But if your husbands pay after pension is £54k there is still
some financial benefit to you I think. It’s only if it’s over £60K after pension that you have to pay it ALL back.

WhatICallMyUsername · 12/01/2024 22:39

If you google cancel child benefit it brings up a link to the gov.uk site to complete a form to cancel jt

LegoLady95 · 12/01/2024 23:33

As a PP states, only RAS pension contributions are deducted, not net pay or salary sacrifice. So it is probably that?

LegoLady95 · 12/01/2024 23:37

His pension statement should confirm what type of arrangement it is.
Does he receive any benefits in kind? Medical insurance etc. If they are not patrolled, they contribute to the adjusted net income.

LegoLady95 · 12/01/2024 23:37

If they are not payrolled that should say.

OneMoreTime23 · 12/01/2024 23:38

Is the £8487 what he has paid in pension himself or does that include the employers contribution?

hellojelly · 12/01/2024 23:42

I think you'll find the problem is his P60 is his taxable figure for the year. If all he has is normal salary sacrifice pension contributions via the employer pension scheme then these will have already been taken into account on his P60, meaning his adjusted net income is the 62k. You owe the full amount of CB back.

Your P60 figure is gross income less pension contributions (into an occupational scheme). You can't then deduct the pension contributions again.

LittleOwl153 · 12/01/2024 23:52

If he clicks 'view calculation' at the end of the system it will show you a breakdown of exactly what he is being charged for.

LittleOwl153 · 12/01/2024 23:53

If this is the first year he has gone significantly over the £50k then there will be the added 'bonus' of having to pay 50% of next years tax bill up front too! That caught me out too so even if it is only chb he's paying it won't be a full payback as it will be £1495.33/£2827.50 claimed this year plus £747.66 towards next year. Annoying isn't it that they can claim back what they haven't yet paid you! But viewing the calculation will tell you that.

Original poster
Jobseeking · 13/01/2024 09:21

LegoLady95 · 12/01/2024 23:37

His pension statement should confirm what type of arrangement it is.
Does he receive any benefits in kind? Medical insurance etc. If they are not patrolled, they contribute to the adjusted net income.

I don’t really know how any of this works, I think it’s a defined benefit contribution, I’ll have to get him to check.

he’s got a break down on line, I’ve not had chance to comb through it.

he’s got medical insurance through work and various types of protection but they are just part of the package and deducted at source

OP posts:
Original poster
Jobseeking · 13/01/2024 09:24

I’ve just looked now and it seems like it’s coming from his student loan? He’s not paid enough student loan back?

OP posts:
OneMoreTime23 · 13/01/2024 09:45

Can you screenshot and remove any identifying details and post it here? It’s very hard to advise with so little info.

Original poster
Jobseeking · 13/01/2024 10:26

It’s the child benefit and the student loan largely

There’s no way we need to pay back this much?
OP posts:
OneMoreTime23 · 13/01/2024 10:34

That’s really helpful. Thanks. So the £62k is his taxable income from his P45?

Silverbirchtwo · 13/01/2024 10:34

Is some of that paying on account for next year? I always get caught by that.

If he's done a self assessment on line, print out and read the tax calculation. You can usually figure out exactly what they have done. If you don't understand it you could ring up HMRC for an explanation.

OneMoreTime23 · 13/01/2024 10:39

I got caught by student loans on some dividends a number of years back.

must be some income in the £62k figure that is not included on the P60 (ie £4k worth)?

Silverbirchtwo · 13/01/2024 10:42

OneMoreTime23 · 13/01/2024 10:34

That’s really helpful. Thanks. So the £62k is his taxable income from his P45?

That's what he put on the form as his gross income, which he would have got from his P45, it may be cross checked with his employers information.

OneMoreTime23 · 13/01/2024 10:44

He may have used the wrong figure. Why P45? That’s what you get when you leave.

OneMoreTime23 · 13/01/2024 10:45

It’s taxable income, not gross income.

OneMoreTime23 · 13/01/2024 10:46

Sorry, I said P45 not P60. Just realised you aren’t the OP.