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Original poster

Child benefit and tax

22 replies

TabithaTiger · 12/04/2022 07:11

I'm posting here as it's seems virtually impossible to get through to HMRC and I can't find the information I need online.

In the tax year 2020/21, I received child benefit for youngest DC for 6 months before he left higher education. As I earn over £50k (I'm PAYE), I have to complete a self assessment form online. I did this in November last year and it came back saying I owe over £1k in tax. How can this be right when I only received just over £500 in hold benefit?

I've tried to speak to HMRC but each time have had to hand up after being on hold for over half an hour and their online chat never seems to be working. All I can find on the website is information about how to pay, but nothing about how to query the calculation.

Does anyone have any experience of this or know who I can speak to? Thank you.

OP posts:

BlueSpottedGiraffe · 12/04/2022 07:21

You had probably been under taxed elsewhere so it has picked that up too, you should be able to work it out from looking at your tax return.

Original poster

TabithaTiger · 12/04/2022 07:37

Thank you, but I don't really understand how I could be under taxed? The only other income I have is my salary and tax is deducted by my employer.

OP posts:

Sapphirejane · 12/04/2022 07:40

Do you have Benefits in Kind, such as private medical insurance? These are a common source of underpayment as HMRC are not always working with up to date values. There are calculators online to check you paid the right amount of tax. If you believe it’s an error though you will just need to persevere with the phone. Try ringing as soon as they open. You could write but it’s taking nearly 6 months for a reply in some cases.

wobytide · 12/04/2022 07:58

I vaguely recall the system used to start presuming the same would happen each year so it starts to accrue tax to cover for the future also hence the £500+ doubled would be £1k+. Even though as you have no children under 18 that doesn't seem to be the case but that's just Government systems for you

Also to clarify is the actual tax "owed" £1k or has your tax code moved by more than £1k as that is also different as it's to account that you only pay part of your income as tax so if the tax code reduces by £1k you pay £400 more in tax at 40% for example so a £1250 change in tax code would repay about £500 in tax

PartyPlan · 12/04/2022 08:00

I earn over the threshold and this is the very reason I don’t bother claiming. It’s too stressful trying to keep the tax in line when everything else is PAYE. Hope you get it sorted!

dementedpixie · 12/04/2022 08:01

How much over £50k were you as you pay back 10% for every £1k over £50k and once you reach £60k it would all need to be paid back

cataline · 12/04/2022 08:02

Did you definitely fill in the correct figures?

So your income figure for the purposes of reporting the HICBC (high income child benefit charge) would have been your taxable pay,

That's your gross pay with your pension contributions taken off.

Do you have to fill in any other part of the form? Other pensions/ income/property/ taxable benefits etc?

Chasingsquirrels · 12/04/2022 08:02

Have a look at the tax computation, it will show how it is calculated and the High Income Child Benefit charge is added as a separate line.

BundtCake · 12/04/2022 08:03

I find their live chat helpful.

Intemperatefatty · 12/04/2022 08:04

Make sure that you are entering the salary amount as stated on your P60 rather than your gross pay. This is what the charge is based on.

We had to pay back £1200 last year. We have now stopped it. It wasn’t worth the hassle of self assessment and zero info from HMRC for £600 a year.

BlueSpottedGiraffe · 12/04/2022 08:04

If you ring between 8-8.30 am you generally get through quite quickly.

VioletCharlotte · 12/04/2022 08:20

This reply has been deleted

Message withdrawn at poster's request.

Original poster

TabithaTiger · 12/04/2022 08:22

@dementedpixie

How much over £50k were you as you pay back 10% for every £1k over £50k and once you reach £60k it would all need to be paid back

£52,500 But even if it all had to be paid back, I only received just over £500, so much less than what they're saying I owe.

OP posts:

Original poster

TabithaTiger · 12/04/2022 08:22

@BlueSpottedGiraffe

If you ring between 8-8.30 am you generally get through quite quickly.

Thanks, will try and call them now!

OP posts:

Strictly1 · 12/04/2022 08:24

I had exactly the same. Had to pay £600 and then they still took additional tax Jan to March. Tried phoning but left on hold. I never got to a conclusion.

tigger1001 · 12/04/2022 08:55

Did they send you a calculation showing how they arrived at the tax due?
If so check all the figures are correct and check they have you in the correct part of the uk (Hmrc geography not great often think people in Scotland are in rest of uk and vice versa)
Then check your p60 info in an online calculator to make sure there isn't any issues there and check what tax code your employer used and check what Hmrc have in your tax code.

BritInUS1 · 12/04/2022 09:01

Did you put in how much you had received in child benefit?

What tax code were you on?

Did you have an benefits on a P11d?

cupofdecaf · 12/04/2022 09:10

It should be your salary - pension contributions so I'm surprised you have to pay anything back. Have you out in the post pension contributions number? It's on your P60. On your salary you should only pay back 20% at most.

SussexSussex · 12/04/2022 19:41

@PartyPlan

I earn over the threshold and this is the very reason I don’t bother claiming. It’s too stressful trying to keep the tax in line when everything else is PAYE. Hope you get it sorted!

We earn in excess of the upper £60k limit. It’s still worth claiming child benefit for a number of reasons.

(A) you get your child a NI number - I know you can still get it you register but don’t take the money

(B) we do a tax return anyway. So no big deal declaring the child benefit. No extra work/cost

(C) you can earn interest on that money before paying it back to HMRC - i know it’s minuscule figures. But every little counts

(D) I claim it out of principle. We get nothing from the government. No free childcare. No tax relief. Diddly squat. So out of principle I am going to make the government go through the administrative burden to pay me and then process my refund

dementedpixie · 12/04/2022 19:44

We claimed child benefit but opted out of payment. The kids therefore got their NI numbers automatically and I got NI credits when I wasn't working

Comefromaway · 14/04/2022 23:06

You should have had a calculation of how it was worked out.

Do you definitely owe the money for the last tax year, or is some of it payment on account?

Drywhitefruitycidergin · 14/04/2022 23:25

Have a look at the copy they emailed you of your submission?
I don't remember if it asks you about the dates you claim the child benefit or just assumes a full year but I take it & pay it back each year.
I always assume it's like anything government related that it's much easier to stay in the system once you are already in and in case my circumstances change in the future I keep it.

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