I've been claiming child benefit over last 3 years when earing over £50,000

[francis15]

To cut a long story short I’ve been earning over £50,000 The last 3 years but I never knew about the child benefit needing to stop.I’m not making excuses I just wasn’t wise to this.I realised this when a friend mentioned it and I went straight online to fill my self assessment in but I’m worried sick.I really am.How much will I be likely to be fined for this.I’ve looked at some websites and it could be £6,000-£8,000 according to some.Has ANYBODY been in this situation?
My last tax year I earned £64000
Previous was £52000
And previous to that was £52000.
I was below £50000 before that.
PS I'm NOT trying to worm my way out of this I just want to know what the outcome will be regarding fines etc

Not me but this happened to some friends recently they hasn't realised and it caught up with them. The had to pay back the 6k they owed plus another 1k fine.

For the last tax year you need to repay 100% of the CB and for the previous two it is tapered between 50-60k.

If you made pension contributions they reduce the salary.

I found them really helpful when we rang as they said lots of people were caught out. We also had to reassure them we'd stopped claiming.

Just ring them. They're reasonable about minor mistakes.

I may be wrong but I thought everyone received child benefit but if you earn over a certain amount you then basically have to pay it back in your tax return.

You can do it either way; forgo it in the first place or claim it then file a tax return, through which it is clawed back.

OP will probably be asked to do tax returns for the three years in question.

I think they just take the money back from r5tsdioyou in tax now, don't they? Don't worry.

Have you taken off the gross amount of any pension contributions at the 40% rate?

Since the tax form asks about child benefit, I am guess you haven't ever been sent one to fill In? Fines will be smallest, or possibly none, if you phone them straight away and explain younthink you might owe them some tax because of the child benefit and ask how to sort it out. You chasing them to ask to pay more tax.

The cat helped type that! I know who a few people who still claim it but the government just claim it back from your taxes. Someone else will be along soon who knows more about these things.

A friend of mine has just received her tax bill after doing exactly the same thing as you (also for 3 years). The bill is 6k.

It looks like your major risk is late filing fines in the three self assessments;

www.telegraph.co.uk/finance/personalfinance/tax/10591211/Over-100000-parents-face-child-benefits-tax-fine.html

Although potentially only one (15/16?) is overdue so far. (2016-2017 tax year deadline is the end of this month). Plus the child benefit will need to be repaid of course.

but the government just claim it back from your taxes. Someone else will be along soon who knows more about these things.

The government don't "just claim it back". You have to register for self assessment

Forgot to mention I have just the one daughter who turns 12 this month

£156 weeks x £20ish then?

About £3120.

Get it sorted quickly so you file this upcoming one in time and minimise fines. You have a fortnight to make contact, register and file.

My sister also did this by mistake and had to pay back for 2 years in a lump sum. It was a couple of thousand pounds.

Going forwards its far better never to claim it in the first place. I think lots of people think it will sneak through since they don't do a tax return for anything else and so HMRC will not notice if they don't receive one (not suggesting you've done this OP).

Yeah this happened to us when we hadn't realised about the threshold until the accountant flagged it. Had to pay back a couple of grand, straightaway if I recall. Easy mistake to make, but it's not a matter of fines, you just owe it all back.

It will only be one year of the full amount of child benefit you received (when you earned over 60k). The years when you earned over 50 but under 60 are taken back at 10% for every 1k over 50k - so reduced by £4 a week. So you're probably looking at a £1500 repayment. If you alert them to it I doubt you will get much or any fine. Possibly a bit of interest.

Oh I didn't know about this either?
If I've read that correctly, it's only if one parent of two parent household earn more than 50k?
Not he combined wage is that right ?

That's right.

Oh my goodness I had no idea.

I don't work but DH has a job earning over 60k. He isn't DS's Dad though, so does it still count?

Any advice would be great

(So embarrassed I didn't realise this)

It does still count, I'm afraid.

Have you take the amounts from your P60 (which is taxable income) or from your basic salary? Make sure you take the p60 amount which is net off pension and childcare vouchers.

I was thinking about this subject the other day. I've read the link and to be honest I'm still confused about it all. My dh is self employed, he earns around 48k but it could possibly rise to 50 if he gets more work than usual. Is anyone else in a similar situation? Our accountant is aware we claim child benefit. Does anyone know what happens at the end of our financial year if he has earned 50k? Would I have to pay it all back? I have no idea until the end of the year if he has earned over the threshold or not. Hope you get it sorted op.

If you are a SAHP and your DP earns over the threshold you should still claim as it also covers your national insurance credits. Then DP should fill in a self assessment form. If you are working then by all means stop receiving it. But SAHP would have large gaps in their NI contributions so suggested to keep it going. That's what we were told anyway.

It is a bloody nightmare - and a pain in the arse. You pay tapered amounts over £50000 - so it is not possible to just stop receiving it, unless you want to forego the amount that is due to you. Plus the NI contributions thing.