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Original poster

Repaying child benefit - HOW

53 replies

Spottyblobby · 23/11/2023 09:31

Last night it exploded in our house because DP received a letter from HMRC regarding the higher income child benefit charge.
For context I have 2 children, 1 is his and we have separate finances, he is the main earner, pays mortgage & council tax (the big bills). I am the lower earner & take care of the smaller costs, utility bills, food shops, childcare, kids bits (clothes, school trips etc). I had no idea he was a higher earner, did not do any of the remortgage forms where I would see his gross earnings, I just filled in the child benefit forms when the kids were born & that was that.
I apologised that I had gotten him in trouble with HMRC, said I would cancel my claim, call and sort everything out & set up a plan to repay what I need to. But it’s so complicated & I don’t know where to start, they need his earnings each year, including from interest???? I thought that was when you took a loan out & interest cost you money, how can you earn from it. They need pension payments for him, they won’t accept anything from me & I just don’t know how I’m going to sort it out. He is so good with money & all over the Martin Lewis stuff so I thought he would know if he was supposed to repay anything & of course I would give it to him if I took more than I should have I just don’t know how to resolve it. Anyone else been here what do I do.

OP posts:
Aposterhasnoname · 23/11/2023 09:33

If he’s so good with money give him the forms to fill in.

CurlewKate · 23/11/2023 09:36

To be honest-if he was that good with money he'd have been on top of it!

I don't know the answer to your question- but I am as sure as I can be that you need to do something about your joint finances. You sound to be in a very vulnerable, untenable position.

11plusdoneanddusted · 23/11/2023 09:39

You earn interest on money held in a bank, building society etc. eg savings accounts, some current accounts

11plusdoneanddusted · 23/11/2023 09:40

Is the mortgage just in his name? Are you married? Do you have no clue as to what he earns? Agree you sound as though you're in a vulnerable position.

SunnySkeg · 23/11/2023 09:43

As the higher earner he has to repay it, not you. Interest is the interest received on savings. He will need to fill the forms in and provide all his financial information: if he knew you were claiming CB it's completely his fault for not filling in a self-assessment every year to repay it if necessary.

MintJulia · 23/11/2023 09:44

Ok, so firstly he isn't in trouble. This is a completely normal tax function.

Secondly, the easiest way is for him to complete a tax return (which he probably does anyway). The overpayment will be claimed back as a tax bill.

Basically if you jointly earn between 100k and 120k after pension contributions, then he will have to pay back a proportion of child benefit. If you jointly earn more than that, he will have to pay it all back.

But it's no big deal, I fill one in every year. It isn't any great drama. I don't understand what he's making such a fuss about.

PenguinLove1 · 23/11/2023 09:45

Why are you apologising and fixing it? If his earnings have risen above 50k then it is his responsibility- what they need his income and outgoings from the relevant tax years and they will either adjust his tax code to reclaim it back through tax payments next year, or give a total that can be paid back in a lump sum.

But if he earns so much more than you you need to check your finances are an even split if you are going to lose the child benefit.

Overthebow · 23/11/2023 09:45

He needs to sort it and repay it, not you. Did he know you were claiming it?

BarbaraofSeville · 23/11/2023 09:47

It's not complicated, he just needs to do a tax return, or give the same information on the form. It takes minutes, most of the information is on his P60 and P11d if he has benefits like a company car. The interest they're referring to is interest earned from savings. Banks send statements of this at the end of every tax year. If he's really 'good with money' he'll have all this information to hand.

But your approach to household finances sounds dysfunctional and unfair to you. You say that 'he is the main earner, pays mortgage & council tax (the big bills). I am the lower earner & take care of the smaller costs, utility bills, food shops, childcare, kids bits (clothes, school trips etc)'

It could well be that those things you pay add up to more than the two bills that he pays and even if it doesn't, it's very likely to be a far bigger proportion of your earnings than he's paying out.

You have not 'got him into trouble' and you should not cancel your claim, especially if you don't earn enough to qualify for NI credits towards your pension.

PuttingDownRoots · 23/11/2023 09:48

You need to have a serious conversation about finances together.

On your situation... you are supposed to claim it, he is supposed to fill in his tax return to repay it. If you don't know how much he earns, how can you know how much needs repaying?

NImumconfused · 23/11/2023 09:49

MintJulia · 23/11/2023 09:44

Ok, so firstly he isn't in trouble. This is a completely normal tax function.

Secondly, the easiest way is for him to complete a tax return (which he probably does anyway). The overpayment will be claimed back as a tax bill.

Basically if you jointly earn between 100k and 120k after pension contributions, then he will have to pay back a proportion of child benefit. If you jointly earn more than that, he will have to pay it all back.

But it's no big deal, I fill one in every year. It isn't any great drama. I don't understand what he's making such a fuss about.

Edited

It's not based on joint earnings. If one person earns over 50k, it kicks in even if the other earns zero, if you both earn 49k each it doesn't. That's one of the aspects many people have complained about.

MintJulia · 23/11/2023 09:50

Another thing OP, if you live together, you don't have separate finances, no matter what he thinks.

For benefits purposes you are a single unit, and he needs to accept that. YOU haven't got him in to trouble. Choosing to live together links you financially for tax purposes.

Littlegoth · 23/11/2023 09:50

@MintJulia It’s not based on combined income, it’s individual.

If either OP or partner earn over - 50k after pension they have to repay 1% per £100 extra earnings.

If either earn 60k per year after pension contributions then the repayment is 100%. If this applies she should still claim the CB as it gives her NI contributions, but tick the box to say she doesn’t want to receive the payment. It’s a massive faff to get the payments and then have to complete a tax return and pay them all back.

Akire · 23/11/2023 09:52

Firstly you have not got him into trouble. It’s not a crime, he will have to pay back the CB on a percentage from £50-60k income . If he is all over the Martin Lewis news and updates he can’t have been ignorant of this. But it’s concerning you have no idea of his income is it £55k or £155?

Give him the forms if he refuses give you the income information then he have to give it to HMRC. Id want a full discussion about money if you are losing the CB that might have big effect on your budget and what you spend on the kids. Is he going to make them up to you?

Also your share of childcare costs, bills and food isn’t the small bills. How much income do you have left for yourself and savings compared to him? I would really struggle with a partner who was being so secretive. He can up and leave with massive savings and you be left with nothing

ChickenAndRice3 · 23/11/2023 09:52

Could I ask a glaringly obvious question, how did you not know he was the higher earner out of the two of you? or do you mean the higher earner threshold for child benefits payments?

MintJulia · 23/11/2023 09:54

Yes, sorry I take that back. You can both earn 49k and claim, but if either of you earn more than £50k some or all will need to be paid back.

But the rest applies. He isn't in trouble, and by living together, your finances are linked whether he likes it or not.

YireosDodeAver · 23/11/2023 09:57

You don't repay a penny. That money is yours, for spending on the kids. Don't stop claiming it either.
The higher earner charge is his problem and it will just form part of his tax bill. I am angry on your behalf that he should think of expecting you to pay it or to cancel your cb claim. How dare he expect you and your kids to suffer because he earns over the threshold. He should be paying for a lot more.

FrustatedAgain · 23/11/2023 09:58

Hi OP, this as everyone else has said is completely normal. I'm sure a quick google will find your OH a dozen Martin Lewis articles telling him what to do.
Child Benefit: check if you're eligible & how much you could get – MSE (moneysavingexpert.com)
It's his problem to sort out though, you can't do this for him.
You have a red flag here though for how much you know about the family finances. Having nothing to do with the remortgaging, not knowing how much your partner earns. I think you need to have more open discussions and joint planning regarding finances in the future. You can't keep your finances completely separate as a family.

MrsBennetsPoorNerves · 23/11/2023 10:03

I agree that the onus was on him to do a tax return. You shouldn't stop claiming child benefit but he needs to sort out his tax affairs. I'm not quite sure why you - or he - would think that you need to do that. It's his tax.

It would have been reasonable for him to assume that you would be claiming child benefit, so he should have known to do a tax return. If he wasn't sure, he should have checked. It does sound like both of you could get better about communicating regarding your finances

I'm interested in what you mean when you say that things "exploded" when all of this came to light... are you scared of him by any chance?

Wahwoo · 23/11/2023 10:06

The system is a bit complicated, but it was designed precisely to help people like you.

YOU are entitled to the money. HE will have to sort it out via a tax return.

some couples choose not to claim at all to avoid this, but that’s only appropriate when finances are fair and transparent.

PaminaMozart · 23/11/2023 10:08

Does the fact that you are unfamiliar with the remortgaging details mean that you are neither on the mortgage nor the deeds? And you are unmarried? You'd be making yourself very vulnerable!

The whole financial setup is completely dysfunctional. You don't know how much he earns, and you have no idea whether he is contributing proportionally to his earnings. Chances are you are hugely disadvantaged.

How much are you able to contribute to your pension and other investments compared to him? How are you both saving for your children's university costs?

Right now you are not acting as a team. You need to sit down and have an open discussion and plan your savings and expediture, both short and long term. You both need a will as well. Getting married would simplify a lot of things.

WB205020 · 23/11/2023 10:12

If OP claimed and didn't mention it to her DP then he wasn't to know and if he didn't tell OP he earns over the threshold then DP wasn't to know. A breakdown in communication which could have been avoided when OP made the claim and ticked the box to confirm neither person earns over the threshold (or at least read the blurb on it all). Im not saying it's your 'fault'@Spottyblobby but it's something that needs sorting and you need to work together to sort it out.

It may seem a huge mountain to climb to get it done but it's not. Sit down with your DP and go through what they have asked and work together to get it sorted. If he refuses to work with you then leave him too it as they will be chasing him and not you.

Original poster
Spottyblobby · 23/11/2023 10:28

But it’s my fault, I’ve been claiming it & now I have left him with this headache.

OP posts:
WingedHermes · 23/11/2023 10:29

You should be claiming it, and he should be repaying each year.

BarbaraofSeville · 23/11/2023 10:30

It's not your fault. You are entitled to CB. It was brought in so that mothers would have at least some money available to feed DC when their feckless fathers didn't provide as they should and it sounds like you need it for this very reason.

It's starting to sound like the CB issue is just the tip of the iceberg of unfair division of household finances.