Have you had to pay a fine relating to the high income child benefit tax charge? Tell an MP about your experiences

[RowanMumsnet]

Hello

Parliament's Engagement Team has been in touch and would like us to pass on the following - so if you've got any thoughts you'd like to feed back to this MP, please add them to this thread.

Thanks
MNHQ

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"Failing to register your liability to the high income child benefit charge through a tax return can result in a fine."

"On 3 September, Conservative MP for South Thanet Craig Mackinlay is leading a debate in Westminster Hall on the issue, and wants to hear about your experiences. He gave us the following statement: “I share the concerns of those residents in South Thanet who have received financial penalties for failing to register their liability to the High Income Child Benefit Charge, who have previously, as routine PAYE taxpayers, had no need to complete a tortuous tax return. I want to shine a light on this complex area of interaction between tax and benefit rules and these unjust fines.”

“Have you received a fine after failing to register your liability to the High Income Child Benefit Charge through a tax return? Did you feel the penalty was justified?”

"We will pass on your comments and experiences to Craig Mackinlay who will use them to inform his speech. He may quote you directly during the debate. Links to watch the debate and read the transcript will be posted when they become available."

Have had three separate CBT notifications totalling £7k. My last child born in 2010 three years before the system came into place. I have spoken to HMRC on numerous occasions explaining I was unaware and they confirmed that they had never sent me a notification notice regarding the new rules in the 2012-13 tax year.
I'm the only full time earner in my family. My wife works 12 hours per week. Its only my company car that is taking me over the threshold as its classed as benefit in kind and this is added to my total income. To clarify I need the car for my job without the car I can not work. One further point is I pay 40% tax already on the company car and now I have to pay a fine of £7k.
On top of that we lose the Child Benefit as its not worth claiming as I explained the company car takes me over the limit.
This is an unfair tax system based on single income not joint. If the company car was not included I would not fall foul to this ludicrous system. Its the most stupid system ever created. The Child Benefit goes to the children it is not a secret tax benefit to fund parents life styles. When will the system wake up and realise its barking mad. But without hard campaigning it will go unchallenged.
This is another PPI in the making. Please everyone effected can we start a campaign group solely based on this topic. Would appreciate the conversations. To finish my rant!! sorry, Where do I find £7k? I'm don't have excess money to take a lone out. I have offered and I'm paying a standing order to show willing at this stage but I was unfortunately laughed at by the HMRC representative on the phone when I made the offering. When I complained to the supervisor who was sympathetic but confirmed calls weren't recorded so he had no evidence that I was telling the trust. 2.5 hours later and four departments I got nowhere. Please help!!

@Bioman just do what everyone else in your position is doing and pay more into a pension so you get to keep CB and extra pension contributions? The relevant amount includes benefits in kind but excludes pension and charity contributions.

Thank you for the guidance another angle to consider. Keep well

I agree it’s really unfair for single parents

As long as you are earning enough to pay Ni contributions it shouldn't impact you not claiming it. When my daughter gets to older I will contact them to arrange getting her NI number as I believe they're not automatically given if you're not claiming child benefit.

Also I completed the tax return on behalf of my partner as he is the high earner and it was such a complicated process, his company car takes him over the threshold but then he has something else the reduces the income, hence I just paid what I think we owed, it wasn't a massive amount and cancelled receiving it. We will owe a bit for this tax year but then we won't after that.

@cupoftea84 - that’s not the case I’m afraid. It looks like your employer has not withheld tax on the benefits in kind so you will have additional tax to pay.