Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Child benefit 'charge'- which year's salary?!

1 reply

YesterdayOnceMore · 24/04/2016 11:04

My DH earns just over £50k, so part of my child benefit is reclaimed via tax (the child benefit charge).

I was under the impression that the CB charge related to the salary for the year in which you got the child benefit and was claimed back the following year following the tax return. For example, if you earnt over £50k in 2014/15, you would fill in a tax return before 31 Jan 2016 declaring this. You would then have the option to pay back the percentage of child benefit for the 2014/15 tax year or to have your tax code changed to reclaim it.

I ask because my DH has just filled in his 2015/16 tax return giving his 2015/16 salary. The tax office have written back changing his tax code to reclaim the child benefit for 2014/15 AND reclaiming the full child benefit amount for 2016/17- when they were called, they said that they had assumed (weirdly and wrongly) that he would earn over £60k this tax year.

Aren't they completely wrong though? Isn't child benefit reclaimed for the tax year past and not reclaimed in advance for the current one? I can't find any definitive answer online.

OP posts:
SouthWestmom · 24/04/2016 11:13

Well we are in the 2016/17 tax year so a code for 2016/16 reclaiming the CB charge is the same as claiming for benefits in kind. It's preferable to a large underpayment at the end of the year. Your issue seems to be the amount though.

New posts on this thread. Refresh page