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Original poster

High Income Child Benefit - Help please!!

55 replies

alypee · 11/01/2023 14:23

I'm really hoping someone can shed even a bit of light before I tear my hair out.

I'm trying to complete a self assessment return for the first time as we are liable for the High Income Child Benefit Tax.

(I apologise massively in advance for my complete ignorance on everything tax related)

DH earns between £50,000 and £60,000. We applied for Child Benefit in Nov 2011 and they backpaid us 3 months.

For the period between Nov 2011 and then end of the tax year we were paid £423 in Child Benefit, so was expecting to pay back a little over half of that, which I have kept aside. I have spent the last two weeks trying to complete the self assessment (which has been a nightmare in itself) and having completed it it says we owe them £523!! How can we own more than we were given?!

We dont have this to pay and the panic is making me feel physically sick constantly.

Does anyone have any clue what I may have done wrong?

I tried calling HMRC today, was on hold for 40mins only to be told that they could only speak to my husband. He's a teacher so is never going to be able to ring himself and the phone line isnt open weekends. Gahhhhh.

OP posts:
hothands · 11/01/2023 14:25

Is it interest? And did you mean 2021?

MustBeThursday · 11/01/2023 14:28

I think we had similar when I'd switched to credits only part way through a tax year as DH had had a pay increase - HMRC attempted to bill for more than we had received. I think I had to contact the child benefit section to get confirmation of how much we received and when and the exact date we went NI credit only. It might be worth you doing this so you have the info to hand when your DH speaks to HMRC.

LIZS · 11/01/2023 14:32

Could he have underpaid on either his paye income or interest accrued? You only fully repay at 60k +

PotatoCatkin · 11/01/2023 14:32

It's only your husband that is liable as he's the high earner.

It's not a joint thing. Why is he not completing his own SA return?

Do you definitely mean 2011? If that's the case, there'll be interest to pay on top of the amount which would account for the extra.

Tombero · 11/01/2023 14:44

What date exactly did you claim from? You mentioned November but then said it was backdated 3 months.

if you claimed from August you’d have received c £740 in the 21/22 tax year.

Caterina99 · 11/01/2023 18:40

What I would do is put in your DH income etc into the tax return form but do not include the child benefit. See what number it spits out for how much tax you owe. Does he have any income other than his job?

Then add in the child benefit and see the difference.

That should help you work out what the tax charge is for. It is possible that he hasn’t paid enough tax through PAYE for some reason, but none of us can know that without exact figures.

If it is correct, then it is absolutely possible to pay in installments. HMRC are usually very helpful for this kind of thing

Caterina99 · 11/01/2023 18:42

I am also assuming you mean November 2021, not 2011. That far back would mean interest charges and probably be a significantly larger underpayment

Original poster
alypee · 11/01/2023 20:20

Thanks all for the replies, sorry I did mean 2021 not 2011. And I applied for it in Feb and it was backdated to Nov, realised this after digging out my CB letter. I hate this stuff.

OP posts:
Original poster
alypee · 11/01/2023 20:22

Caterina99 · 11/01/2023 18:40

What I would do is put in your DH income etc into the tax return form but do not include the child benefit. See what number it spits out for how much tax you owe. Does he have any income other than his job?

Then add in the child benefit and see the difference.

That should help you work out what the tax charge is for. It is possible that he hasn’t paid enough tax through PAYE for some reason, but none of us can know that without exact figures.

If it is correct, then it is absolutely possible to pay in installments. HMRC are usually very helpful for this kind of thing

@Caterina99 thank you thank you thank you 🙏🙏. Did this and its saying there is a charge of £403 so it's not me who's buggered it up!

DH had all sorts of problems with a new employment getting his tax code wrong so unfortunately looks like its left us out pocket. Really appreciate your help, thank you.

OP posts:
Tethersend01 · 11/01/2023 20:29

OP its your husband who needs to do a SA tax return and pay the charge not you.
And also yes they put an additional charge for couple where one or both are in the higher income bracket, I believe its interest. Its really not worth claiming unless you are not working and want to maintain Your NI contributions.

Caterina99 · 11/01/2023 21:42

I’m glad you figured it out!

I’m a bit rusty on the online system, but I believe you can apply online to spread the cost.

You can definitely do it over the phone though, although I feel your pain with DH and arranging those kind of things

TheClitterati · 12/01/2023 06:23

Did he work from home at all? If so you can claim £6 per week under employment expenses. Makes slight reduction to taxable income.

Did he make any additional pension payments? If so that can reduce his tax liability.

If you earn between £50k & £60k making additional payments into your pension can be a way of reducing your taxable income for self assessment.

Brunonono · 12/01/2023 07:05

I believe it's too late for this year but I'm future if the return is submitted online before the end of December (and as long as balance to pay isn't to huge - there is a criteria for this but don't know it off the top of my head), you can pay the tax back through tax code for next year so it spreads the cost and is taken off salary.

What you will probably find now is that your husband's tax code will be changed to anticipate needing to pay back some child benefit next year too so his monthly tax will go up to pre-pay on an estimated basis which will hopefully reduce any balancing payment due next year. The first year of falling into the charge is the worst as you have to get your head around systems and processes for tax returns that you've not had to deal with before when employed.

Oblomov22 · 12/01/2023 07:11

I'm going to do Dh's this week.

euff · 12/01/2023 07:17

It may be worth getting financial advice for the future op. When DH fell into this threshold we stuck the child benefit into another account as we didn't understand all this stuff. Our thinking was that if we have to repay all or most of it it's there and we haven't spent it and anything we have left over is a bonus.

If it turns out you won't actually be keeping anything I believe you can ask to keep the claim and not actually be paid so you keep NI credits if you need. Another thing I read on here which I haven't checked out is that your DH may have to pay less back if he puts more into his pension.

Binfluencer · 12/01/2023 07:24

Why on Earth are you doing your DH's tax return???? Does he not have hands?

fudgecat · 12/01/2023 07:33

When you get through to HMRC just ask them to stop paying the CB, you will still be getting the pension credit in the background so to speak but won't have the hassle of paying back the CB

User963 · 12/01/2023 07:36

If he pay into a pension before tax it reduces your yaxable
imcome and raises the threshold at which you have to pay the cb tax. Check that out incase you didn’t know.

HelpMeGetThrough · 12/01/2023 07:41

I believe you can ask to keep the claim and not actually be paid so you keep NI credits

You're right.

We do this as I got hammered and had to pay a load back. I did one more return showing that we didn't receive any payments and then received a letter from HMRC saying no more returns would be needed.

It's a bonus, as they were a pain in the arse.

OneFrenchEgg · 12/01/2023 08:15

If you go to the make a payment section online you can set up a payment plan. We always end up owing over £2000 and do that.

Isitwinternow · 12/01/2023 08:30

If one doesn't claim Child Benefit and isn't earning, then you may not receive the full state pension.
Opt out of receiving CB but still have NI pension contributions paid by the Govt.

ChessieFL · 12/01/2023 19:34

fudgecat · 12/01/2023 07:33

When you get through to HMRC just ask them to stop paying the CB, you will still be getting the pension credit in the background so to speak but won't have the hassle of paying back the CB

You should only do this if one of you earns more than £60k taxable income, when it all has to be paid back. If one of you earns between £50k and £60k taxable income then you still get to keep some of it so if you stop getting it you will be losing out.

Pootle40 · 12/01/2023 20:42

It's not worth the hassle of claiming if over £50k. What a ball ache.

HelpMeGetThrough · 13/01/2023 04:29

If one of you earns between £50k and £60k taxable income then you still get to keep some of it so if you stop getting it you will be losing out.

You won't keep much at all, it isn't worth the hassle of self assessment.

Butterfly44 · 13/01/2023 04:55

Currently doing this also and proportion of child benefit needs aging back. I have contributed to employee and private pension. Anyone know if I add these together for tax year or just the private one?

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