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Original poster

Child benefit nightmare

135 replies

dancingqueen123 · 03/12/2022 12:49

I have been paid this since kids were born. Never thought anything if it, as I thought it was a universal benefit to Mothers.
DH has had a letter saying he's over the threshold. Has been for some time.

I'm really worried. Why didn't they just stop paying us it?!

Will they just slap us with a humongous bill now?
Things are really tight right now. Really don't need this 🙈

OP posts:
boxochocsaway · 03/12/2022 14:47

As @Reallybadidea said - if he's between 50-60k then it is likley that his pension contributions account for most of the past 50k pay. You might not owe much at all

GrazingTapir · 03/12/2022 14:47

You are not ineligible to receive it though. Just not eligible to keep it!
Receiving it keeps your NI contribution in place, we did this and then paid back the actual money. No use if you earn over the threshold anyway and have been paying NI.

autumnboys · 03/12/2022 14:50

We were overpaid CTC the only time we ever qualified for it. I owed about £1k, but was prompt in contacting them and arranging a repayment schedule when I was notified. That is obviously a bit different to CB though and a much shorter period of time. I have a 13yo and this rule came in when he was about 2.5, so you would have been entitled to the full payment for your first at birth. I had to ring up to stop the payments of mine. Importantly though, it does contribute years towards your state pension if you’re not working, so make sure you claim it but opt not to receive the payments. Good luck in sorting it.

lndnbrdge91 · 03/12/2022 14:51

I am in a similar position as had a bonus which took me over the threshold at the very end of the last tax year. I stopped the payments from April 2022 as knew I was over.

Now I've had a letter as they want it all back from tax year 2021 to 2022 which is about £1800.

MintJulia · 03/12/2022 14:52

They don't stop it because the whole point is it is paid to the parent caring for the children to ensure they can eat.

It's up to your dh to pay the tax in his annual tax return. When they dropped the limit to £60k per person, there was huge coverage, in the news, in papers, on here. And repeatedly for the last 10 years. How could you not know?

If he owes ,000s he needs to explain, and present the tax office with a payment plan.

Babyroobs · 03/12/2022 14:53

It's not been a universal benefit for a number of years.

Reallybadidea · 03/12/2022 14:53

DenholmElliot11 · 03/12/2022 14:45

Good point. I also wonder if he can backdate this for a few years - so pay 3 years worth of pension in one go and that will at least take him under the limit for 3 of those years.

It's not just on you though OP. Your dh should have been on it as well.

Show quote history

Yes, this is a good idea. It might not 'cost' you any less than repaying the child benefit but at least the money will be in his pension instead.

gogohmm · 03/12/2022 14:56

It's his gross salary after pension and other allowable deductions so may not be over £50k that much. Declare now and ask for a payment plan as an additional deduction off taxes over 2-3 years

ivykaty44 · 03/12/2022 15:10

Why don't they just tell you?

due to in England Tax having the onus on the general public to find out and pay what they owe.

Its the same with any other tax, you need to research and see whether you need to pay the tax, ignorance of the tax is not an excuse.

Council tax is the same, the onus is on the person to pay, no one will tell you the rules - you'll get a court order if you don't pay (which has a cost attached)

HMRC job is to collect tax, not tell you the rules and regulations surrounding tax

I guess that is how its always been, they used to put you in jail for having debts - which always seemed bizarre to me as then how were you going to pay those debts, but thats how it was

dementedpixie · 03/12/2022 15:12

dancingqueen123 · 03/12/2022 14:42

It's something that's been paid into my account since I had my kids. To he it goes out before I even notice it's come in!

I have a job, kids, elderly parents to look after. I haven't thought about it.

I wish they had just stopped paying it if we had become ineligible. It feels like a letter to say "you can't claim this anymore" might have been reasonable to expect.

You don't become ineligible though
Anyone can claim it. If there is a higher earner in the family then they do a self assessment return to pay back some or all of it. (Something like 10% for each £1k over £50k so by the time you get to £60k it all gets paid back)

Original poster
dancingqueen123 · 03/12/2022 15:14

gogohmm · 03/12/2022 14:56

It's his gross salary after pension and other allowable deductions so may not be over £50k that much. Declare now and ask for a payment plan as an additional deduction off taxes over 2-3 years

Thanks that's really helpful. Will do that.

OP posts:
Suzi9989 · 03/12/2022 15:15

Hope you get this sorted, all will work out

FixTheBone · 03/12/2022 15:16

I had this.

I told my wife to stop claiming, but she didn't.

I got a bill for £8k, payment due 4 weeks from when the letter arrived.

After a number of calls, HMRC let me split it over 10 monthly direct debits, and interest was added.

Original poster
dancingqueen123 · 03/12/2022 15:16

Is it the combined salary they go on then?

I work but don't earn over £50

OP posts:
dementedpixie · 03/12/2022 15:17

dancingqueen123 · 03/12/2022 15:16

Is it the combined salary they go on then?

I work but don't earn over £50

No, it's an individual higher salary they go on

35965a · 03/12/2022 15:17

No it’s if one parent earns over £50k. Not combined salary.

Original poster
dancingqueen123 · 03/12/2022 15:17

FixTheBone · 03/12/2022 15:16

I had this.

I told my wife to stop claiming, but she didn't.

I got a bill for £8k, payment due 4 weeks from when the letter arrived.

After a number of calls, HMRC let me split it over 10 monthly direct debits, and interest was added.

DH hasn't ever mentioned it.
Glad you got it put into a plan!

OP posts:
Original poster
dancingqueen123 · 03/12/2022 15:19

35965a · 03/12/2022 15:17

No it’s if one parent earns over £50k. Not combined salary.

So one couple could earn £49k each, and a second couple could only have one person working, but they earn £50k, and the second couple don't qualify???

OP posts:
toomuchlaundry · 03/12/2022 15:20

DH earns over the threshold but we still claim it but he puts it through his tax return. That's why they don't automatically stop it

Headabovetheparakeet · 03/12/2022 15:21

I wish they had just stopped paying it if we had become ineligible. It feels like a letter to say "you can't claim this anymore" might have been reasonable to expect.

The reason they don't do this is that some couples do continue to claim and then repay it. Claiming Child Benefit means a stay at home parent gets NI contributions paid until their youngest child is 12.

Also, if he earns between £50k-£60k, you are still eligible for some of it, it tapers away between those incomes.

dementedpixie · 03/12/2022 15:23

Well they do qualify as everyone does. You only pay back all the CB if you earn £60k +

It is unfair that a couple could earn £98 between them but an individual earning £60k would have to pay it all back

MelchiorsMistress · 03/12/2022 15:23

They did tell you, eventually!

If they just stopped paying there would be some women and children very badly affected by the loss of money. It works the way it does so that (mostly) mothers have access to their own money for their children even if their high earning partner is financially abusive.

Ot sounds like you’ll be able to sort it, good luck OP.

PurplePosies · 03/12/2022 15:25

We had the same issue. I'd been claiming since DH was on way less than the threshold and didn't realise there was one tbh. We had to pay it back but got a payment plan. The person we initially dealt with said tons of people get caught out due to this. It's not well handled at all, they should at least send an annual reminder that there's a limit because we had no idea.

MelchiorsMistress · 03/12/2022 15:26

dancingqueen123 · 03/12/2022 15:19

So one couple could earn £49k each, and a second couple could only have one person working, but they earn £50k, and the second couple don't qualify???

Show quote history

Yes. There was some outrage about it at the time the rules changed, but parents who were affected by it then were a tiny minority and no one else was going to care about people who are high earners, so the injustice went ahead unchallenged.

HappyHolidai · 03/12/2022 15:27

As others have said, you are entitled to some of the child benefit even after the adjustment for your husband's salary being between £50k and £60k.it's a stupid policy and very unfairly enacted. Why they didn't just make it taxable I don't know.