High income child benefit tax return payment on account

[Polarbearyfairy]

I have just started my tax return for high income child benefit charge for 21/22.

Basically I changed employer in that tax year and my income went over the threshold. I stopped payments partway through 21/22 as soon as I knew my income would go over the threshold so only received £400.

My new employer taxed me incorrectly, which was going to be recovered via PAYE. However now I've looked at the self assessment tax calculation it says I will have to pay the underpaid tax (fine) the child benefit (fine) AND a substantial payment on account for this tax year.

Any ideas why? My only source of income is one PAYE job.

Did you do the self assessment because if the child benefit? Do you have any other income or benefit in kind Eg company car?
I would ring the self assessment line and ask them when you have all the figures in front of you.

Payments on account are automatically triggered when less than 80% of your tax liability has been deducted at source (possible because of the child benefit and the PAYE error). You can ask HMRC to reduce them, but be careful. If you reduce them too far and you do, in fact, have a liability for the relevant tax year, I think you get charged interest.

Yes the tax return was because of child benefit, and I don't have any benefits on lond/company car etc - just bogstandard PAYE.

Ah the 80% thing might explain it thinking about the figures. Good to know about being charged.

I'll give them a call tomorrow - thanks for your replies.

Yes Payments on Account are because leas than 80% of your tax has been deducted at source. You can claim to reduce them, even down to 0 if you are confident next year your tax will be fully paid through PAYE.

The same has happened to us. This isn't a fine as such. It's a repayment of child benefit you have already received. We complete a full tax return due to having rental income and had to pay back the full £1,800 for 2021/22 but are not required to make a payment on account for 2022/23

Did you go over £60k I take it? I’m still paying back mine from an earlier year through Paye due to a company car mix up. It looks like they’ve added £12k to my tax code but I phoned and she explained it’s the amount extra I’m taxed on. This year I’ll probably get about £53k altogether so I had 3 months child benefit and hopefully won’t have to pay that back.

Hi. To calculate adjusted income for car tax, should you input the benefit in kind amount, or the taxable amount of the BIK? E.g. if the car value is £34k, BIK value of £11k, tax on BIK is £2.3k. Which figure do I use to add onto my salary please?
Thank you

You need a P11D which works it out, you need to know the list price of the car- what it cost new with all additions and also the emissions, then you calculate the BIK value.
so yes say it cost £34 the BIK value (£11k) is added (nominally) to your salary and you pay the amount of tax as if that is your salary so it depends how much you earn as well.

Thank you so much, so it’s the £11k I would add on, not the £2.3k (tax) figure?

Yes, when you do a tax return you add on the p11d value or if it is taken through paye they can change your tax code to take the extra tax back over time, well that’s what they did for me. Are you doing at as a tax return?
have a look at this and you can use the calculator www.gov.uk/tax-company-benefits/tax-on-company-cars

How have you calculated the tax? As it depends on what bracket the £11k pushes your full salary into which is why you add the 32% of the list price or whatever it is depending on the car’s emissions.