Child benefit HMRC repayment query

[wildflower93]

Hi all,

We received a startling HMRC child benefit bill of £875 this month.

It was during 2022-2023 we received it.

Partner was on 40k but received an unexpected pay rise in October 2023, and bonuses in both December and March which took his pay to over 60k. (The threshold was
50k back then). We cancelled in October the second he received the raise.

We wanted to collect it through his tax code but seems it's too late for that. There's an option for a payment plan, but I'm just wondering whether this is considered a debt management plan? I don't want it to affect our credit rating so I'm just weighing up our options.

He currently has no debt.

We can afford us but it will sadly wipe us of our savings after already paying for a full roof replacement back in September 🙃

Just pay it out of your savings? And start saving again in February. Tbh you've had a couple of years to put money aside for this.

Between childcare, mortgage rate, cost of living and having to fork out for various crises, sadly we have not been able to. Partner was told he was getting a bonus back in December but it wasn't given. The money was allocated towards that. It would leave us with absolutely no savings or buffer for savings.

It will only affect your credit rating for the length of time you are paying it off if it affects it at all so if you don't have the money in savings just set up the payment plan.

I doubt hmrc appears on a credit report

I've paid back a small amount (£120) in a few payments and nothing appeared on my credit report.

He had £20k in bonuses the year you were tipped over the threshold? You couldn't spare £875 from that?

@FrannyScraps No. His pay was increased significantly between October-April.

He received two 2k bonuses.

During the time I received it, I was on maternity leave earning nothing.

We really struggled. We then had to pay for numerous things including an entire new roof.

It is now paid.

Thanks for your completely unhelpful input. It must feel great finding posts on Mumsnet to claw onto and try and make mothers feel guilty. It hasn't worked in this case. I hope your life is otherwise filled with happiness despite this very sad hobby

I would ring HMRC and explain or ring Citizens Advice.
I think if you can make a payment plan they would sooner you did that than not pay.
I thought if you didn't pay them adjusted your tax code but I could be wrong.

We had a similar issue. My husband was on 37k. My son was born March. Then new tax year started. In July he was offered a new job that took him to just over 50k. I immediately called HMRC to stop CB payments. I asked if we'd have to pay back the April May and June CB payments and was told no. Fast forward 2yrs HMRC sent my husband a letter saying we did have to pay back the 3 months payment of CB plus £250 fee and we owed £500! I was like this is madness. How did he know in April he'd get a new job going over the threshold and we informed HMRC immediately and didn't hide it. They said no we had to pay it all back so we did £50 a month until it was cleared.

Can you pay it and then have a frugal couple of months until it is repaid? Also if you pay your council tax and water over 10 months, no payments in Feb and March will go a long way towards the bill.

Now that the threshold has increased, are your eligible for some of it again - is it worth reclaiming?