Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

I think we have claimed child benefit when we are over the income threshold.

35 replies

clusterfuck101 · 24/03/2023 15:06

Before I start this please only comment if you have something helpful or constructive to say. I really don't need any nasty mean comments (which seem to be the norm on here of late) as I am in a right state and crying already. I am very scared about how we will pay this back if I am right but equally don't want to bury my head in the sand.

To explain I have 2 children from a previous relationship and a 3rd with my partner. He moved in about 18 months ago although we have been together a lot longer but living separately. I cancelled my tax credits when he moved in as our wages put us over the threshold and I asked him what his earnings were to check if we were still eligible for Child benefit.
I explained that if he earned over 50k we would not be able to claim it. He assured me his wages were no where near that.
Today he was supposed to get a pay rise/back pay and bonus in his pay packet. He also didn't get paid for over time last month so it was added to his pay packet this month. He got taxed 3k which was a huge shock and he sent me a picture of his payslip. On it I can clearly see his total gross pay is just shy of £62k!

I called him immediately as the first thing I thought was shit I have been claiming Child benefit and he is well over 50k. He started arguing that that's not his salary, its shift allowance and over time blah blah......I said they won't care- its his taxable income that they are interested in and clearly with shift allowance and overtime he has well exceeded the 50k limit.

The child benefit claim is in my name and from a quick google it looks like I am going to owe them 2.5k.......I don't have that kind of money. I work part time in an admin role that doesn't pay particularly well. My wages just cover the childcare bill and our food bills. Nothing much else. I don't even know where I will begin to pay back 2.5k if this is correct. (I obviously will pay it back but thats about 1/4 of my annual salary)

Does anyone know if I have worked this out correctly and if so what will happen. I am sat her sobbing because I don't know how I will repay this money- I guess I will have to get a loan but I will also be £200 a month worse off as I will no longer be able to get child benefit as we obviously shouldn't have been claiming it in the first place. My own salary is about to drop by £200 a month too so all together that's probably going to make me £600 a month worse off! I don't know what I am going to do and don't know where I should start in sorting this mess out.

OP posts:
gohomeroger1 · 24/03/2023 15:09

If he is on 62k a year surely he has savings to pay it back?

NameChange2589 · 24/03/2023 15:17

You’re partner will be responsible for paying it back as he is the one earning over the threshold.

https://www.gov.uk/child-benefit-tax-charge

Details in the gov link above.

He will need to complete a self assessment, and they’ll let him know how much to pay back.

There should be an option to just have his tax code adjusted for next year.

High Income Child Benefit Charge

High Income Child Benefit Charge - check if you're affected, how and when to pay this tax charge, opt out and restart Child Benefit payments.

https://www.gov.uk/child-benefit-tax-charge

NameChange2589 · 24/03/2023 15:19

Your*

BluetheBear · 24/03/2023 15:20

I earn between £50-60k and have to pay some of it back but I think it's only half of what I get for one child so about £500 a year?

If one of you earns over £60K then between you, you would need to pay back all of what you have had in the tax year but you don't need to do the tax return until next Jan if I remember rightly but it may be worth calling HMRC.

I haven't had to pay it back before though!

Precipice · 24/03/2023 15:21

I can't comment about the money in your situation, but yes, if together you're over the threshold, it will have to be paid back. Some people in that position claim it anyway - it gets you NI credits even if on the money there's no gain because you'll just be paying it back come Jan.

Don't get a loan. That will just be a big loss for you in the long term. You do have to pay it back to HMRC, but you might be able to arrange a staggered payback if you're really struggling.

It's not your debt just because it comes under your name. You're not eligible because of his earnings. He should not leave this on you.

Original poster
clusterfuck101 · 24/03/2023 15:22

I don't think he has any money in savings. He covers the mortgage (1k pm) and bills probs about £800. I cover childcare and food. We did a lot of work on the house when he moved in as the baby was quite unexpected and the house was too small to fit us all in (2 bedrooms and 5 people) so we took on additional debt to cover that which he is also helping to pay for. It has wiped out all of our money and savings but we figured if we kept plodding along the nursery fees would reduce when the baby hits 3 and we would have more money- it would just be tight for a few years. I honestly wouldn't have ever claimed child benefit if I thought we weren't entitled to it.

OP posts:
dementedpixie · 24/03/2023 15:24

He registers for self assessment and he pays it back, not you

What year did he first go over £50k? Between £50 and £60k you pay a proportion back and once you reach £60k it all gets paid back. Its something like 10% paid back for each £1k over £50k.

Fupoffyagrasshole · 24/03/2023 15:25

it's fine honestly he just has to do a self assessment tax form and pay some of it back

https://www.gov.uk/self-assessment-tax-returns

He can then call HMRC and ask for a payment plan

Self Assessment tax returns

Self Assessment tax returns - deadlines, who must send a tax return, penalties, corrections and returns for someone who has died.

https://www.gov.uk/self-assessment-tax-returns

MothBat · 24/03/2023 15:26

Agree with namechange. Don't panic. Your partner will be responsible for registering for self assessment and paying back the child benefit. This can be done via changing his tax code assuming he is on PAYE. You can continue to receive the money as long as he does this. If his income is variable depending on his bonus and overtime it's probably worth continuing to receive the money as you may be eligible to keep some or all of it in future years. If only one child is his then it may be worth your DCs other parent claiming the benfit instead of you if their income is lower and increasing your maintenance so you not worse off.

FinallyFoundIt · 24/03/2023 15:26

See if you can find an online calculator, and go through his payslip carefully. If his gross pay is £62k, how much of that is going into a pension? I'm pretty sure it's net pay that is taken into consideration, so before you panic, find out your full situation, and then work out what you can do with the help of HMRC / Citizen's Advice Bureau. You might not be in as tricky position as you think

Original poster
clusterfuck101 · 24/03/2023 15:28

Thank you so much for the helpful comments. I just looked and with his pension deductions before tax his income was 59k which the website tells you to deduct.- I have been texting him and he thought it was after tax.

It is still saying we owe 2.4k out of 2.6.

I might just call them up on Monday and see what we need to do. If they can adjust his tax code then that would be amazing- paying it in one big hit would be impossible for us.

OP posts:
PatriciaHolm · 24/03/2023 15:28

As the others have said, please don't panic. I owed some last year in the end, and it's just taken back through your tax code. He needs to register for self-assessment and they will sort it out.

dementedpixie · 24/03/2023 15:30

Depending on when the tax return is due he could be able to pay it back via his tax code rather than in a lump sum

Iizzyb · 24/03/2023 15:32

He registers for tax self assessment and completes his tax return online for this tax year after the end of this tax year and HMRC will deduct the overpayment amount via his tax code which means it's paid back over a long period. It won't be very much and it's not a big deal altho tax return is a PITA. Needs to be done before something like 28th December to be taken via tax code otherwise it has to be paid in full by end of Jan (I.e. next year).

Original poster
clusterfuck101 · 24/03/2023 15:33

he said this is the first year he has gone over 50k- I am not sure I believe him, thats one heck of a jump and its not like he is doing loads more overtime- he has always done overtime! He is terrible with numbers/maths so I should never have just taken his word for it, I should have checked everything properly first!
I will try and dig out his pay slips or p60 for last year and take a look, I am just not sure where he keeps them.

The older 2 don't have any contact with their own dad- DP has pretty much raised them so we won't be able to get him to do anything. He has said he isn't interested in a relationship with the kids......thats a whole other thread!

OP posts:
ArdeteiMasazxu · 24/03/2023 15:36

You do not have to pay it back, and if a fine is issued it is him that will be hit with it, you have not done anything wrong. The child benefir is legally yours and it is totally ok for you to claim it.

For his own tax situation - if he contributes the excess over £50,000 into his pension then there's no problem at all, there's nothing to repay.

If he doesn't do this, then when he completes his tax return he will have to answer "has anyone in your household claimed child benefit" and if he answers "yes" then he will have to pay some additional tax to return some of the benefit, and it he answers "no" he is committing tax fraud and will eventually get caught and fined.

He moved in 18 months ago so around September 2021, there's still time for him to make a correction to his 2021-22 tax return as you can make adjustments up to a year after end of the relevant tax year, and he doesn't even need to make a declaration for the 2022-23 tax year yet as it doesn't finish for another couple of weeks.

But none of this should stop you from claiming the CB. The benefit is quite deliberately structured so that even if you are a SAHP in a controlling relationship with an arsehole and have no access to any other money, you are still allowed to claim it. Any misdemeanor is on him, not you.

BluetheBear · 24/03/2023 15:39

Am I missing something? It seems really odd to me that PPs are saying don't worry about the CB he has to pay it back, not you. I mean, yes, don't worry about it but surely you are a couple with joint finances so it's for both of you to work out otherwise why would you keep claiming child benefit when one of you has to pay it back?

Bramshott · 24/03/2023 15:45

BluetheBear · 24/03/2023 15:39

Am I missing something? It seems really odd to me that PPs are saying don't worry about the CB he has to pay it back, not you. I mean, yes, don't worry about it but surely you are a couple with joint finances so it's for both of you to work out otherwise why would you keep claiming child benefit when one of you has to pay it back?

Because the OP's situation is complicated by the fact that her DP is not the father of her elder DC.

And because she will protect her pension entitlement by claiming Child Benefit if she is on a low wage. Many women don't realise this and only find out later when their pensions are shafted and it's hard to catch up....

ArdeteiMasazxu · 24/03/2023 15:47

BluetheBear · 24/03/2023 15:39

Am I missing something? It seems really odd to me that PPs are saying don't worry about the CB he has to pay it back, not you. I mean, yes, don't worry about it but surely you are a couple with joint finances so it's for both of you to work out otherwise why would you keep claiming child benefit when one of you has to pay it back?

Because it's perfectly legitimate for the person who takes primary responsibility for the care of the children to have this benefit in their own account. Not every couple shares every penny equally - obviously it's great if they do, but given that OP had no idea till recently how much her partner earned, it very much looks like they have separate accounts.

If you have separate accounts, it's much better if OP has the CB in her account and can buy e.g. new school shoes for the DC when she needs to, rather than them deciding "as a couple" not to claim the CB and then she has to go begging to her partner for the money she needs for these kinds of expenses.

Original poster
clusterfuck101 · 24/03/2023 15:48

@BluetheBear its quite a relief that they will adjust DPs tax code to cover it as I earn peanuts compared to him, but I agree that this is a joint fuck up and we will both need to shoulder it. I will contribute to cover a share of it too by paying more into our bills pot so he can pay less.

I think I will need to start looking for a second job or something I can do from home on the days I am not currently working as even though he earns a good wage we are still only just covering everything and I won't be getting Child benefit any more.

If we have to pay the majority of it back then I think I will just close the claim. It's not worth the stress or worry for a few £££. I will talk to DP this evening.

I am so grateful for the level headed responses on here. I was freaking out thinking we would be in so much trouble. It was a very silly oversight.

OP posts:
PuggyMum · 24/03/2023 15:59

If he's only on the cusp of having to pay it back he could increase his pension contributions to keep him under?
It's a nudge to check everything properly though!!

Marmight · 24/03/2023 16:03

Its not a joint fuck up. It's only just happened as in this tax year.
Register for self assessment and complete the form by the end of December 2023 (for his tax code to be amended) or by the end of January 2024 to pay back the benefit via a lump sum to HRMC.
Also agree what you are both going to do with regards in the CB going forward, Close the CB claim, keep the claim open but don't receive it or keep the claim open and receive it. If the later, he will need to pay it back each year

BarbaraofSeville · 24/03/2023 16:18

What @Marmight said. If his pay is variable its worth keeping your CB claim as you might sometimes be able to keep some of it and all he has to do is do an annual declaration by the end of each calendar year. It's a very quick and simple online job and they'll take the money back by PAYE, ie out of his money as he's the high earner.

If I were you I'd also look at your finances as you're in a precarious position as you're not married and he's paying the mortgage (is the house in both names?) so paying towards an asset and you're paying for consumables that aren't directly related to the running of the house, which could put you at a disadvantage in the event of a split. Do you have access to your own money to spend on yourself and lead a similar lifestyle to him in terms of personal money?

tribpot · 24/03/2023 16:30

Please make sure you do protect your NI contributions, even if that's registering for CB but opting not to be paid it. Personally I would keep having it paid to you and taken back from his income, so that if his income varies in a year and you're eligible to keep the money you've already got it.

I think you are being a bit hard on yourself saying this is a joint fuck-up, it shouldn't really be necessary to police your partner's income.

Thatladdo · 24/03/2023 16:30

They will care and they will want it back.
Many collegues have been caught by this i think the most anyone had to repay was a little over £7k.
I would make contact and see what the situation is. it wont go away im afraid.

Swipe left for the next trending thread