Tax on child benefit

[wizzler]

Spent the morning completing self assessment forms for the last tax year. I’m PAYE but have underpaid significantly . I’ve worked out its because HMRC have messed up the tax code by understating my high income child benefit ( I’m the higher tax payer) … So annoying. Anyone else had this ?

I tend to just save my tax code notice changes without thinking about it.. now I’ve looked I can see the number has varied significantly with no reason given for the changes

anyway … lesson learnt…. And a warning to all to check your tax code !

I think it’s because the thresholds changed from April 2024. In previous years they had always made an assumption for me about the child benefit and built it into my tax code, but from April 2024 it just reverted back to the standard personal allowance tax code and I think it’s because I was no longer earning over the top threshold to lose it completely. They didn’t know in advance how much I might have to pay back so I assumed they didn’t factor any of it into the tax code.