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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:
hedgehoglurker · 03/12/2022 15:29

It really might not be that much to pay back if he is under 60k. Try not to panic until you know the facts.

If he'd been over 60k the whole time, that would be a hefty bill depending on how many years you've been claiming.

But if somewhere around 55k or less, it might "only" be a few hundred per year that he should have paid back. You don't say how long you've been claiming or how long he's been over £50k.

TiddleyWink · 03/12/2022 15:33

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 exactly. This is one of the many reasons why a household can be much better off when both partners reduce hours slightly rather than one working full time and one working say three days a week. When DH dropped to four days and I did the same it meant we still qualified whereas we wouldn’t have if he worked full time or I did and the other worked three days.

For two kids the CB amount made quite a difference to our calculations as to how we would be best off.

Snowdropsarelovely · 03/12/2022 15:33

Remember it is only after pension contributions have been taken out.

So if he earns say £53,000, and pays £4000 a year into a pension you will be fine.

Blowthemandown · 03/12/2022 15:38

@dancingqueen123 there’s a calculator online. I don’t think pension comes into it, even if you do it as salary sacrifice. You give back some if your income is over £50k and will end up giving it all back if you’re at £60k. You can opt out of receiving it or pay back what you owe later. There is a web-site beginning www. and ending .gov.uk/child-benefit-tax-charge where you can check.

Original poster
dancingqueen123 · 03/12/2022 15:38

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.

This!

OP posts:
Lairig · 03/12/2022 15:39

Unfortunately you will have to pay whatever you owe. I had to repay thousands.
One thing though, and in case anyone reading doesn't know, it's really worth receiving CB because if a child is under 12 you get NI paid which is valuable for anyone not working.

Myjobisanightmare · 03/12/2022 15:40

As soon as it changed OH was in the 50+k bracket but we thought we’d get the % we were still entitled to but the whole tax return unless it’s something you’re already used to in your life was such a fuck on as we’d no idea what we were doing we just opted out completely

Monkeytapper · 03/12/2022 15:41

We had this a few years ago, paid about £5k back…then for a couple of years after I received it then paid it back at end of year….which was a faff…so now I get the ‘pension credit’ for it, don’t receive cash anymore which is easier.

Original poster
dancingqueen123 · 03/12/2022 15:42

He's been just over 50 for a couple of years I think.

As I said earlier my kids are 10 & 13 so have claimed for that many years.

I'll look into it.

Thanks to those of you who have given helpful advice. It's very much appreciated.

To those saying "how could you not know?!" Well, I didn't. So I can't really tell you "how". And maybe try not to say anything in future, if you can't say anything kind or helpful. It's really no skin off your nose is it?

OP posts:
AlarmClockMeetWindow · 03/12/2022 15:43

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.

Yeah... and totally stitches up single mothers providing for their families because they have it withdrawn at half the household income level of a working couple. It's a terrible system.

Also it's not necessary to go through this rigmarole of receiving the money then paying it back to get NI credits if one of a couple is unemployed, as many posters have said it is. You can simply opt out of the payments and still receive NI credits if you have no job.

AlarmClockMeetWindow · 03/12/2022 15:44

Lairig · 03/12/2022 15:39

Unfortunately you will have to pay whatever you owe. I had to repay thousands.
One thing though, and in case anyone reading doesn't know, it's really worth receiving CB because if a child is under 12 you get NI paid which is valuable for anyone not working.

You don't have to take the money to get the NI credits!

Skodacool · 03/12/2022 15:46

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.

This is very important as it marks your entitlement to the state pension.

liarliarshortsonfire · 03/12/2022 15:48

dancingqueen123 · 03/12/2022 14:32

Why don't they just tell you?
I've had nothing from them.
He's not over £60k
Shit.

If he's not over 60k pa how much pension is he paying? He needs to pay a % in tax if he earns between 50k and 60k after his pension contributions

I earn 59k, but my work pension and personal pension contributions are 9500 pa, so I don't have to pay any extra tax or cancel my cb

toomuchlaundry · 03/12/2022 15:52

But I assume you still have to 'claim' @AlarmClockMeetWindow but ask for the money to not be paid

EmilyGilmoresSass · 03/12/2022 15:53

TiddleyWink · 03/12/2022 14:37

Sorry to be a bit harsh OP but you’re grown adults and if one of you is earning that money he clearly has the mental capacity to work this out for himself. You can’t expect to be spoon fed through life, you’re responsible for not claiming benefits that you’re not entitled to, it’s not the government’s fault for not seeking you out to correct your mistake!

I hope you can get it sorted OP, but this isn’t anyone else’s fault.

Show quote history

This 100%. On that sort of wage I wouldn't even expect it anyway.

Myjobisanightmare · 03/12/2022 15:56

i think OP has a point I can’t remember the last time I read something about how it all works it’s not a topic of conversation that it was 5+ years ago

Helpwithdaughterpls · 03/12/2022 16:04

dancingqueen123 · 03/12/2022 15:42

He's been just over 50 for a couple of years I think.

As I said earlier my kids are 10 & 13 so have claimed for that many years.

I'll look into it.

Thanks to those of you who have given helpful advice. It's very much appreciated.

To those saying "how could you not know?!" Well, I didn't. So I can't really tell you "how". And maybe try not to say anything in future, if you can't say anything kind or helpful. It's really no skin off your nose is it?

@dancingqueen123

At just over 50 you're still eligible to claim the majority, so you may owe them very little. You will also have to pay late fees on the tax returns but this is capped at £300 or the total amount owed.

The interest rates are extremely low, so even if you get a bill and can't pay for a few months it's not a disaster.

HMRC are generally pretty pragmatic and human, phone them, they have no interest in pushing you into financial distress!

This all happened to me too. Honestly it was fine, HMRC were very reasonable

PeppermintChoc · 03/12/2022 16:06

LIZS · 03/12/2022 14:38

If he earns under 60k gross he may well be borderline for repaying anything. Does he do a self assessment tax return? You can still be paid and repay excess by self assessment or opt out of receiving payments (but still get ni credits).

Yes it’s a sliding scale until £60k but if you’ve been claiming the full amount you’ll owe some. I’ve had to pay it back by my tax return. Now stopped claiming.

Buckle67 · 03/12/2022 16:07

You can pay extra into you work based pension or personal pension(sipp) to bring you under the 50k cap I believe.
Then do a self assessment and you should be in the clear. However you need to make the extra contributions before April 5th of the current tax year, so planning is needed as well as having the money available.

user1487194234 · 03/12/2022 16:17

i continued to claim when I went self employed as earnings were variable
Reported it on my self assessment tax form
Stopped claiming when earnings were consistently over the threshold

user564576 · 03/12/2022 16:18

If he's on just over £50k then you will still be entitled to the majority of it, possibly even all of it depending on his pension contributions. What does his last couple P60s say? I'm on just over £50k but still completely eligible even with small bonuses because my pension takes me just under.

I wouldn't panic, if you do owe something it doesn't sound like it'll be a lot.

yoyy · 03/12/2022 16:23

remember to minus pension contributions

Inasec24 · 03/12/2022 16:24

This happened to me - my salary went up to £55k and it took a year to realise. I did a tax return and was still entitled to half so was worth still claiming it even though I knew I would get a bill for half of it back every year. Then I went up to £65k and did the calculator thing and was entitled to nothing so just opted out. Received my bill for the last tax year and it was £459 or something, and I will get another bill next year probably for slightly more, then that will be it. I don't know how they work it out as I was expecting my bill to be much higher.

yoyy · 03/12/2022 16:25

remember to minus pension deductions

SueVineer · 03/12/2022 16:31

Reallybadidea · 03/12/2022 14:53

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.

Show quote history

It’s not a good idea as you can’t backdate pension contributions like that. Child benefit is based on your yearly income minus certain deductions like pension payments in that year.