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Original poster

Huge overpayment child benefit

247 replies

sarahjnm · 04/11/2024 16:04

Hadn't realised living with £60k earner meant that I shouldn't rcve child benefit for my daughter. Only just realised. It's been 10 years.
Anyone else been in this situation? I'm guessing I pay all back and penalties too. Could be as much as £15k.
I'm feeling suicidal at the thought. Our family are struggling as it is with various other things.

OP posts:
freepend · 04/11/2024 20:01

I'm also in a similar situation, only joined finances with partner last year and he earns a lot more than I thought. Living together 3 years but maintained separate bank accounts until we bought house together late last year. I've been looking at the net payments adjusted calculation and need to get his payslip to try and work it all out. Assuming HMRC can work it out, I.e. what counts as deductible? Pensions etc?

TwistedSisters · 04/11/2024 20:02

For all those who are saying you need to claim child benefit to get NI credits, this is no longer the case and hasn't been for a while.

You can put the claim into HMRC and then opt out of receiving the payments if you're over the threshold , this way you still receive the NI credits but you don't need to worry about declaring it via a tax return - can do it all online.

Mill3nnial · 04/11/2024 20:02

susey · 04/11/2024 19:53

"Pocket it"? Do you know how much CB actually is (not exactly tons) and it's only paid to those with dependent children, so obviously it has been spent on them! Paying the bills or buying groceries, anything that keeps the house going.

Weird goady comment.

Show quote history

I think you're entirely missed the point!

Yes I do know how much it is but if I had a partner who was claiming it without my knowledge, I wouldn't be happy if I was left with the HMRC bill just because I earned more than £60K

TwistedSisters · 04/11/2024 20:04

Grapesofmildirritation · 04/11/2024 19:59

In case anyone reading here and getting the wrong information from pp (this is also relevant to OP going forward): you can “claim” CB to get the credit towards your state pension and tick the box not to be paid.

there is absolutely no reason to go through the rigamarole of claiming it and then paying it back via tax return.

and my dc just got their NI number aged 15, in anticipation of their 16th birthday, so there is no need to claim it just to ensure that happens too (another misleading statement I’ve seen on MN)

Yes this!

I often see ppl quoting on here that you need to receive it and pay it back to get the NI credits, this hasn't been the case for several years.

QueenofLouisiana · 04/11/2024 20:06

We fucked up on this too. We thought it was after tax, pension etc. it isn’t. It wasn’t applicable when the change was made so didn’t take to much notice, then when we realised we weren’t eligible, years later when DH’s salary increased, we stopped claiming it.

However, we didn’t stop claiming soon enough and had to repay the excess, plus a fine. We paid £400 a month, the fine alone was about £1k. Completely accept that we messed up, but the fine felt particularly painful.

Liesmorelies · 04/11/2024 20:11

QueenofLouisiana · 04/11/2024 20:06

We fucked up on this too. We thought it was after tax, pension etc. it isn’t. It wasn’t applicable when the change was made so didn’t take to much notice, then when we realised we weren’t eligible, years later when DH’s salary increased, we stopped claiming it.

However, we didn’t stop claiming soon enough and had to repay the excess, plus a fine. We paid £400 a month, the fine alone was about £1k. Completely accept that we messed up, but the fine felt particularly painful.

Wait, what? I thought it was after pension? I have been advised to pay more into my pension to avoid losing out on CB. Apart from wishing it was still universal and wishing there was acknowledgement of the disadvantage single parents are at, I bloody wish they made it simpler to understand and deal with.

YeahWellWhyNot · 04/11/2024 20:12

Sorry OP this sounds hard. It is a strange rule as others have pointed out.

I currently work part time, 3 days per week so despite my FTE salary I take home only 2/3. I want to increase days working as DD gets older and childcare gets easier but I guess I need to take to this into account if it would tip me over 60k (it wouldn't ATM but it's 2/3 years away!). It's not surprising to me so many people miss this as there's usually a lot going on in life !

Morph22010 · 04/11/2024 20:14

MumblesParty · 04/11/2024 16:42

Maybe he’s on PAYE, so wouldn’t be doing a tax return

Show quote history

You are supposed to register for self assessment if you are on over £50k and someone in household is in receipt of child benefit

SummerHouse · 04/11/2024 20:14

I feel for you op. I can absolutely see how this could happen. And it is a crazy system. The blame doesn't really lie with you or your partner but i sincerely hope that your partner is not accepting your offer to pay it back to him. If anything it's his fault for earning too much!

Hang in there and try not to worry till you have the actual figures. It may not be as bad as you think.

Also to anyone who doesn't believe you didn't know, why on earth would you suddenly be going to HMRC now??! It's totally clear to me you didn't know. Why would you keep a tax rule that didn't affect you at all in your head for years upon years.

Sleepysleepycoffeecoffee · 04/11/2024 20:15

MumblesParty · 04/11/2024 16:47

OP I’m sorry you’re stressed about this, but I have to say, I’m slightly bemused at the outpouring of sympathy. You’ve said your DH earns “a lot more than £60k”, so you should have been able to manage without child benefit, unless there’s a huge backstory and you’re a victim of financial abuse. In which case you have my deepest sympathy, and I hope you can get away from him.

I’m surprised she didn’t know about this rule after 10 years of claiming …..

lasagnelle · 04/11/2024 20:16

sarahjnm · 04/11/2024 19:41

Yep we are now editing the last 4 years of self assessments and then will see the outcome.
Reason. Wife did not know the rule and kept claiming. Dp did not check wife's finances.

Are you married? I hope he's making up your shortfall in child benefit

lasagnelle · 04/11/2024 20:16

Sleepysleepycoffeecoffee · 04/11/2024 20:15

I’m surprised she didn’t know about this rule after 10 years of claiming …..

Show quote history

You only fill the form in once

Original poster
sarahjnm · 04/11/2024 20:17

How long ago was this? And how much in total did you have to pay back? and over how many months? Thank you so much 🙏 sorry for all the questions

OP posts:
lasagnelle · 04/11/2024 20:18

susey · 04/11/2024 19:53

"Pocket it"? Do you know how much CB actually is (not exactly tons) and it's only paid to those with dependent children, so obviously it has been spent on them! Paying the bills or buying groceries, anything that keeps the house going.

Weird goady comment.

Show quote history

I get about £100 every 4 weeks so quite a bit really

Overthebow · 04/11/2024 20:19

Liesmorelies · 04/11/2024 20:11

Wait, what? I thought it was after pension? I have been advised to pay more into my pension to avoid losing out on CB. Apart from wishing it was still universal and wishing there was acknowledgement of the disadvantage single parents are at, I bloody wish they made it simpler to understand and deal with.

Show quote history

It is after pension, don’t worry. It’s not after tax though, which is probably the part pp is referring to here.

Morph22010 · 04/11/2024 20:21

Rocksaltrita · 04/11/2024 18:14

It’s on him to sort out but I agree, it’s a stupid system. I read an article about a family who fought this and won as they’d never had a letter to tell them they needed to pay back once over the threshold. Will see if I can find it.

They had been charged penalties on top by hmrc, the penalties were quashed as they had a defence that it wasn’t deliberate as they hadn’t received a letter but they still had to pay the actual tax. This was also quite specific as they had their child before 2013 but hadn’t been on salary over £50k at that point so didn’t receive a letter notifying them of the changes. Anyone who is in receipt of child benefit for a child born after 2013 doesn’t have this defence as from then it was included in the initial letter when you apply for child benefit

socks1107 · 04/11/2024 20:22

We also got a bill after three years. When we met he told me his salary but I never thought to check when we moved in together! Luckily we had enough in savings and paid it all off in one lot, the biggest hassle was the self assessment he was made to do for up to ten years but they were happy after five and dropped it.

roadrager · 04/11/2024 20:23

@Sleepysleepycoffeecoffee

I've claimed for 10+ years and I didn't know this rule (although our income is nowhere near £60k)

Boohoo76 · 04/11/2024 20:23

starbat · 04/11/2024 18:39

She kept claiming because it didn't need to be cancelled. She was entitled to claim it and you then should have paid it back to HMRC out of your wages, via the tax return. It's set up like this so financially abusive husband's couldn't leave a SAHM with no money to feed and clothe the children. Women also get NI credited to them when claiming child benefit but not working, so it stops women with no financial means finding themselves without adequate state pension in old age. Obviously if you're sharing wages and she's working and paying NI then there's no need to do it the complicated way and it could have been cancelled like you say. But she didn't have to.

Show quote history

You can actually get the NI credits without being paid the child benefit. You just complete the form that you don’t want the payment. Lots of people overlook this.

Liesmorelies · 04/11/2024 20:28

Thanks @Overthebow . The thing is, I thought you just took the figure from your P60 and if that was over £50k (or £60k next year) you have to pay. The figure on the P60 is after tax isn't it?

Greenbanana7 · 04/11/2024 20:29

This happened with me, I didn't realise that it kicked in when salary went over £50k. I was extremely worried as have 4 children and had been claiming for all. Despite the long wait on my phone to speak to HMRC they were surprisingly helpful and I agreed a payment plan to repay the monies over 3 years. And bizarrely when I did finally pay it off I got a letter from them that they owed me £7k! I queried it but they were adamant that they owed it to me so I took it! Try to remain calm. I felt physically sick when I realised my mistake. It is set up to be confusing and catch people out, a very poor provision. Any questions please do ask x

newusern9999 · 04/11/2024 20:29

When I did my self-assessment in order to pay back some child benefit last year I found that by the time I had entered the money I had gift aided to charity HMRC actually owed me money!

Morph22010 · 04/11/2024 20:30

Grapesofmildirritation · 04/11/2024 19:59

In case anyone reading here and getting the wrong information from pp (this is also relevant to OP going forward): you can “claim” CB to get the credit towards your state pension and tick the box not to be paid.

there is absolutely no reason to go through the rigamarole of claiming it and then paying it back via tax return.

and my dc just got their NI number aged 15, in anticipation of their 16th birthday, so there is no need to claim it just to ensure that happens too (another misleading statement I’ve seen on MN)

Some people don’t bother claiming it at all though rather than claiming and ticking the box for no payment, then it can cause issues with ni credit and ni number

Morph22010 · 04/11/2024 20:31

Liesmorelies · 04/11/2024 20:28

Thanks @Overthebow . The thing is, I thought you just took the figure from your P60 and if that was over £50k (or £60k next year) you have to pay. The figure on the P60 is after tax isn't it?

The figure on your p60 is the gross amount before tax, tax paid is also shown on your p60.

pinkstripeycat · 04/11/2024 20:36

My DSis had to pay back £10k.
Her exDH received the child benefit even though the kids lived with her. They lived with him for a while then went back to her and she didn’t switch the child benefit back.
Her DH earnt the money and she didn’t even have a job.
They queried it saying they weren’t the ones who claimed the child benefit but were told they had to pay it back anyway.