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Original poster

The tax demand - am I paying too much?

9 replies

Millionairerow · 15/02/2016 14:38

Hi can anyone help me understand. I kept on claiming child benefit post the rules that anyone earning over 40k should stop or do a self assessment. I did a self assessment 3 years ago and had to pay 2k but then asked them to claim it through tax code. Shortly after my tax code changed and my personal tax allowance went down from 10k to 3k - so thought I was covered. Did not fill one out last year. No chase up. This year got the reminder and did one - now being chased up for 2k as it didn't give me the option of claiming through tax code, got my change of tax code again. Personal tax free amount is 1000 more but think this is a general change happening to everyone. Am I paying too much tax if i pay this other 2k? What does claiming child benefit from tax code actually mean?

OP posts:
dementedpixie · 15/02/2016 17:09

How much do you earn? You start to lose child benefit after £50K and lose it completely at 60K. You can only get it claimed back via your tax code if you do the return online by 30th December.

Original poster
Millionairerow · 15/02/2016 19:36

What I'm saying is ive paid one Lump sum and then had it claimed from my tax the following year as well. Last year I did nothing but my tax code means my personal allowance is only 3k. Did another tax return which was late and told to pay up but yet again have a v low personal allowance . So I payong too much if I pay the Lump sum too.

OP posts:
dementedpixie · 15/02/2016 19:38

Why didn't you do one last year? And do you earn over £50k ?

dementedpixie · 15/02/2016 19:39

You will need to check if your tax code is correct then

dementedpixie · 15/02/2016 19:49

There must be other things affecting your tax code as child benefit would not affect your tax code by £7000

LIZS · 15/02/2016 19:52

I didn't think you could repay via tax code. 7k gross would be too much for cb and it is 50-60k where you lose it gradually.

dementedpixie · 15/02/2016 19:53

You can pay back via tax code as long as you do the tax return within the correct deadline

Original poster
Millionairerow · 17/02/2016 15:00

Yes I receive over 50K now (been on Mat leave and stuff so complicated). I asked inland revenue but didn't understand what he said. Something about IT having to be £7000 off personal allowance to account for higher rate of tax (but he didn't explain it well).

OP posts:
scarlets · 17/02/2016 16:26

If the deduction figure in your tax code is 7000, it means that £2800 in money is actually being deducted (7000 X 40%).

Maybe you should webchat with hmrc. Might be better to see it written down.

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