Help! Child benefit hmrc fine

[Lucieee09090]

Hi I’m in the deep depths of anxiety and panic attacks at the moment and could do with hearing others experiences? So in 2021 I realised about the high income tax charge for claiming child benefit. We had gone over in 2020 and 2021. I called and cancelled the claim and asked what to do and they said to wait for a letter. Anyway that’s what we did and it’s just come to my realisation that we haven’t had this and that we should have done a self assessment. I’ve registered to do this now but I’m severely panicking that I’m going to end up with 10k fines for not doing it sooner!

Ring HMRC on Monday to find out exactly what you need to do, don’t panic until you know. Get your P60’s ready and the amount of child benefit received in those years, although HMRC should have them on the system. It is down to the individual person to submit self assessments if you go over the limit but at least you cancelled child benefit once you knew.

Just do the self assessments for those years.

No need to worry.

However, it's not entirely clear whether you work. If you don't you should re-register for CB as it ensures you get NI credit

I went over without realising for the tax year ended April 2021 and just got a £50 fine. You need to register for self assessment and complete tax returns. You can do it today.

We went over without realising, and it had been for quite a while. I rang HMRC to admit this and got a really understanding guy. I did have to do a self assessment and HMRC agreed a repayment plan with me that was affordable. It was less of a "fine" and more paying back what we'd been overpaid in CB I think. Was several years ago now.

from what I’ve read online the penalty is £1600 a year for non filing of the self assessment which is 2 years for us. I’m happy to pay the tax back that we owe but paying 2x 1600 fines will mean us selling the house. I’m in a really dark place with it. I’ve registered hubby for self assessment just waiting for the code in the post.

Hi, I'm now in this situation, Lucieee09090. What happen in your case?
I need to call HMRC this week, just really really worried about the fine. We just didn't realise as we are PAYE.

OP, the tax office will not expect you to sell your house over a genuine mistake.

If there is tax to be paid, they will tell you. In the mean time, start putting aside as much as possible to cover the two years benefit you may need to repay.

When the letter comes through, if you cannot pay all of it, call them and explain. They will most likely agree a repayment plan.