HMRC tax bill

[TheWitchwithNoName]

I’m in a real pickle with this, tax owed for 23-24:

£3,328 (all child benefit back, 1,500 on P11d and the rest is due to not paying tax for the first month of a new job - my fault, I’m an idiot).

on top of that they want half again by the end of Jan, with a further 1,660 due by the end of July, that’s over 6k!

I’ve applied to reduce my payment on account but I’m still looking at 5k owed.

after all outgoings I have £300 spare a month, does anybody know if the debt management team would accept this? It’s going take at least 2 years to pay this back.

I've looked into reducing the payment on account to zero but understand they would back charge interest?

I'm going to call to set this up but I’m not sleeping and wondered if anyone else had been in this position.

Hmrc are generally fairly reasonable if you're proactive in speaking to them. My experience is they are open to reasonable offers. Good luck!

Are you likely to owe tax for current tax year 24/25? Are you still receiving child benefit? Is the p11d item a recurring thing?

Yes, I’ve calculated the proposition of CB due back (the threshold has gone up) and my company are looking at taxing the p11d (medical) at source but thats not guaranteed.

i stopped cb for 3 months but have reapplied as i could do with the extra money now. DS is 17 this year so i wont be claiming for much longer anyway.

such a pain have to pay 2 years worth of tax in 6 months!

I’m confused why you’ve applied again for child benefit if you earn over the threshold. You’ll simply have the same problem again next year.

@PinotPony the threshold for CB changed in April 2024.
Prior to that threshold was £50-£60K (all paid back at £60k)
Since April 2024 the threshold is £60-£80K (all paid back at 80K)

If OP earns under £80K she gets to keep some of it

Dementedpixie is correct, the threshold has been raised for 24-25. I wouldn’t have reapplied if I needed to pay the whole lot back again.

Ask them if they can take it back via your tax code & paye over several years.

It has to be under £3k for that but that’s my plan for next year as it should be around 2k.

But can I do that if I’m paying a year ahead?! I’m still confused 😩