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Original poster

Child tax benefit still being paid with high earning husband

54 replies

SAHmama2020 · 11/10/2021 23:44

Hello!! It has just come to light that I should not be getting the child tax benefit that you get if you earn upto £50K. My husband has been earning over that (wage increases every year for for 4 years up untill now at £100k this month.
I have not worked or worked enough in 8 years to pay tax other than NI contributions.
I have 2 children so receive £140 a month.
I am at the point now I can’t sleep not knowing what to do worrying I am going to jail for something we didn’t know?! I was claiming 30hours childcare when I was working up untill December 2020 which I was updating with both our info so why has child tax overpayment not been flagged up through there as it checks your earnings, NI, PAYE to make sure you are eligible for the free hours?!
Since we moved counties and I stopped working it then changed to 15 hours and at the time my husband was on £87K.
I am aware I have to report it but any info is much appreciated?!

OP posts:
AnonymousAuroch · 11/10/2021 23:48

If you earn over £50k and you or your partner is claiming child benefit you have to file a self-assessment at the end of the year to pay back any overpayments. Are you sure your partner hasn't been paying it back every year on your behalf?

Winniemarysarah · 11/10/2021 23:54

We did this unknowingly for 2 years (my partner earned just over the threshold). When they realised, they sent a bill through the post and we had to work out a payment plan to pay them back. I would tell them ASAP as the longer you leave or the worse it will be

Original poster
SAHmama2020 · 11/10/2021 23:56

He doesn’t do them, his HR guy does them as far as he knows?! So basically he said I think I will have to start doing self assessment now after wage increase and bonus which lead us onto looking and finding out the child tax situation?! Honestly my husband knows nothing other than he pays a massive amount of pension out of his wage.

OP posts:
Original poster
SAHmama2020 · 11/10/2021 23:59

Yes planning on reporting it this week but just wanting lots of info to equip my self with! Honestly I am beside my self with worry now! He thinks he was earning just over when I would have started claiming for my 2nd DD so I can’t understand why it’s not being flagged?

OP posts:
istherelifeafter40 · 12/10/2021 00:11

You will eventually get a bill and a fine; it's better to get in touch and explain and pay it back. There were loads of threads when people got bills to pay back 5 years' worth of child benefits...

Jeremyspoke · 12/10/2021 00:45

Just to say as well OP, it sounds like you might be mixing up Child Benefit with Child Tax Credit by some of what you've said in your posts. Everyone (earning under 50k) is entitled to Child Benefit and it has nothing to do with childcare or working hours, that's Child Tax Credit which is calculated on your earnings and includes your claim for childcare. So receiving Child Benefit when you earn over 50k isn't a Child Tax Credit overpayment, it's a separate benefit and that's why it hasn't flagged when you've updated your childcare claim with Child Tax Credit. I hope that makes sense and helps with sorting it out, I don't know why they have to make it all so confusing!

RavingAnnie · 12/10/2021 00:59

You might want to have a read of this as well:

taxscouts.com/high-earner-tax-returns/60-tax-what-to-do-if-you-just-started-earning-over-100000/

Changechangychange · 12/10/2021 01:15

Your DH has to tick a box on his tax return each year. The child benefit is then taken back out of his tax bill. It’s your DH who should be losing sleep over this, not you. If he hasn’t been doing a tax return, he needs to start (which is why many higher earners don’t bother claiming it).

Pombear47 · 12/10/2021 06:22

OP please don’t worry about this. It’s really common and lots of people are now having to pay back big bills. Just declare it to HMRC and they will send you a bill, you won’t get in trouble and tbh I don’t know anyone who has been fined (you will need to pay interest). As you’ve declared the issue yourself rather than them realising they are able to reduce penalties to 0, if they don’t do this initially then when you have paid the tax due you can appeal any penalty. Please don’t stress, just call and get it sorted and it will be a weight off your mind

gracielooloo · 12/10/2021 20:34

Sorry to be the bearer of bad news but we were fined and had to pay interest, we had to remortgage to pay as they weren’t prepared to arrange a payment plan.🙄

Cocomarine · 12/10/2021 20:47

The Self Assessment form (SA100) has a section where you state what CB you have received. So you can’t really say that HMRC should have picked it up, when they’ve directly asked you.

I think you’ll find this is a storm in a teacup, and you’ve made the correct declaration each year.

dementedpixie · 12/10/2021 20:53

@SAHmama2020

Hello!! It has just come to light that I should not be getting the child tax benefit that you get if you earn upto £50K. My husband has been earning over that (wage increases every year for for 4 years up untill now at £100k this month. I have not worked or worked enough in 8 years to pay tax other than NI contributions. I have 2 children so receive £140 a month. I am at the point now I can’t sleep not knowing what to do worrying I am going to jail for something we didn’t know?! I was claiming 30hours childcare when I was working up untill December 2020 which I was updating with both our info so why has child tax overpayment not been flagged up through there as it checks your earnings, NI, PAYE to make sure you are eligible for the free hours?! Since we moved counties and I stopped working it then changed to 15 hours and at the time my husband was on £87K. I am aware I have to report it but any info is much appreciated?!
It's your dh that needs to declare it on his self assessment tax return and then the child benefit is paid back through his tax code. It's his responsibility as much as yours.

You can be registered for child benefit but opt out of payment so there is nothing to pay back

dementedpixie · 12/10/2021 20:58

You will need to look back at previous years too as CB would need to start being paid back once salary goes over £50k. Between £50-60k a proportion is paid back and once you reach £60k it all needs to be paid back.

I'd opt out of payment from now on so you don't need to pay any back in the future

idontlikealdi · 12/10/2021 21:03

@dementedpixie

You will need to look back at previous years too as CB would need to start being paid back once salary goes over £50k. Between £50-60k a proportion is paid back and once you reach £60k it all needs to be paid back.

I'd opt out of payment from now on so you don't need to pay any back in the future

Don't do that. Keep getting it as it goes towards your ni contributions. Keep claiming and just pay it back. Your in a dodgy position as it is you need to keep your ni up.
dementedpixie · 12/10/2021 21:07

@idontlikealdi claiming and opting out of payment also gives you your NI credits. You don't need to get the actual money to get the NI credits

Iggly · 12/10/2021 21:09

@Changechangychange

Your DH has to tick a box on his tax return each year. The child benefit is then taken back out of his tax bill. It’s your DH who should be losing sleep over this, not you. If he hasn’t been doing a tax return, he needs to start (which is why many higher earners don’t bother claiming it).
This is what I had to do. In the end I stopped claiming and then I opted out!
AFuturisticalSound · 12/10/2021 21:10

Don't do that. Keep getting it as it goes towards your ni contributions. Keep claiming and just pay it back. Your in a dodgy position as it is you need to keep your ni up

I think the PP means register but ask not to have the payment.

dementedpixie · 12/10/2021 21:11

Opting out of the High Income Child Benefit Charge

Parents who may be liable to the charge can decide to opt out of receiving the Child Benefit payments so that they do not have to pay the charge each year, but can still receive the non-financial benefits.

To ensure the non-financial benefits are still received, they must stillcomplete the Child Benefit claim formand consider, as above, who is completing the form (for example, the non-working parent) to protect their state pension by receiving National Insurance credits during this period.

HouseOfFire · 12/10/2021 21:12

@gracielooloo

Sorry to be the bearer of bad news but we were fined and had to pay interest, we had to remortgage to pay as they weren’t prepared to arrange a payment plan.🙄
Bloody hell!! How much was it? What calculations did they use?

Surely it can't have been that much?

dementedpixie · 12/10/2021 21:13

Yes you still have a CB claim but don't take the payment. It preserves the NI credits for the claimant but you don't have anything to pay back

beautifullymad · 12/10/2021 21:17

You haven't done a thing wrong so don't worry. I was in this situation a few years ago.

The child benefit is paid to the main carer of the children, usually the mother. This continues regardless of the income of the father. This is to ensure the money reaches the children where it's needed.

If your husband earns over 50,000 The HMRC will make a tax adjustment and ask your husband to pay the amount of child benefit back via his tax code.

That's all that happens. Please don't cancel your child benefit. It's important it continues, you get pension credit for state pension with children under 11. Or at least you used to.

If you are referring to child tax credit which is a different benefit entirely, then yes, you need to call them tomorrow. But not for child benefit.

dementedpixie · 12/10/2021 21:17

@SAHmama2020

Yes planning on reporting it this week but just wanting lots of info to equip my self with! Honestly I am beside my self with worry now! He thinks he was earning just over when I would have started claiming for my 2nd DD so I can’t understand why it’s not being flagged?
It wouldn't be flagged by CB as anyone can claim it regardless of income. Higher earners are responsible for registering for self assessment and paying back some or all of the CB depending how much over £50k they earn
dementedpixie · 12/10/2021 21:20

@beautifullymad

You haven't done a thing wrong so don't worry. I was in this situation a few years ago.

The child benefit is paid to the main carer of the children, usually the mother. This continues regardless of the income of the father. This is to ensure the money reaches the children where it's needed.

If your husband earns over 50,000 The HMRC will make a tax adjustment and ask your husband to pay the amount of child benefit back via his tax code.

That's all that happens. Please don't cancel your child benefit. It's important it continues, you get pension credit for state pension with children under 11. Or at least you used to.

If you are referring to child tax credit which is a different benefit entirely, then yes, you need to call them tomorrow. But not for child benefit.

Hmrc will only make a tax adjustment if her dh registers for self assessment and declares the CB payment. Its not done automatically

She can still have a CB claim but not get the money. She does need to clarify whether her dh has been paying any of the extra CB back for the last 4 years

toomuchlaundry · 12/10/2021 21:25

@gracielooloo how much did you owe?

gracielooloo · 12/10/2021 22:27

It ended up being about 7k, we didn’t want to use up our savings and we were due to remortgage so borrowed extra to cover some of it.

This was for about 5 years worth I think (some years DP was just over 50 so we didn’t have to pay it all and some he was over 65 so it all needed to be paid back).
We’re actually entitled to it again as DP has changed jobs and earns just under 50 but no way are we claiming as if he does overtime we’ll be in the same position again!