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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:
Beenaboutabit · 16/10/2021 18:29

Pension contributions are deducted to calculate taxable income. Taxable income is used to calculate CB ‘clawback’

www.armstrongwatson.co.uk/news/2021/05/child-benefit-trap-and-how-avoid-it

Beenaboutabit · 16/10/2021 18:37

I don’t work for or recommend Armstrong Watson BTW. It’s just the first website I found that is 2021 and explains it better than me

helpthewhos · 16/10/2021 20:10

This sounds dodgy as hell, it may not only be the child benefit charge he owes. And he needs a qualified tax adviser, not a financial adviser.

NK36ed7bf9X12822238f65 · 12/01/2022 10:05

I do work for Armstrong Watson quoted above and this is one of the most popular articles on our website and an issue we've advised upon for many of our clients. We're very well placed to help with tax and financial planning enquiries as we're both chartered financial planners and an accountancy firm. I'm by no means trying to advertise, but I would just recommend that you seek professional financial advice. Smile

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