Tax to repay - Child Benefit
Discussion
Has anyone else just received a letter from HMRC or DWP telling you to pay back around £3k Child Benefit as you just exceeded the limit for qualification?
I knew it was coming and thought my income was going to be just below,but no, I earned slightly more so BANG we'll have all your child benefit back!
Best bit is the letter states: "We cannot tell you the amount you need to repay by the end of January, but we will impose penalties and interest on the outstanding sum..."
Why not just allow everyone 2 kidsworth and that's it?
Just been watching "Benefits Britain" so am also wiping steamed urine from the ceiling. I may be bitter that it goes to some of them!
I knew it was coming and thought my income was going to be just below,but no, I earned slightly more so BANG we'll have all your child benefit back!
Best bit is the letter states: "We cannot tell you the amount you need to repay by the end of January, but we will impose penalties and interest on the outstanding sum..."
Why not just allow everyone 2 kidsworth and that's it?
Just been watching "Benefits Britain" so am also wiping steamed urine from the ceiling. I may be bitter that it goes to some of them!
GroundEffect said:
I thought no one on PH got benefits? And if you did, you were a filthy failure in life?
In all fairness you can earn double the UK average wage and still be entitled to claim child benefit... that's madness in my opinion!OP: this should help https://www.gov.uk/child-benefit-tax-calculator
Rather than start being smart alecky about benefits in general, perhaps we should try answering the OP's question.
What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
Eric Mc said:
Rather than start being smart alecky about benefits in general, perhaps we should try answering the OP's question.
What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
In my case, yes greater than £60,000 in 2014/15, no to Self Assessment. What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
aka_kerrly said:
GroundEffect said:
I thought no one on PH got benefits? And if you did, you were a filthy failure in life?
In all fairness you can earn double the UK average wage and still be entitled to claim child benefit... that's madness in my opinion!OP: this should help https://www.gov.uk/child-benefit-tax-calculator
sidicks said:
miniman said:
In my case, yes greater than £60,000 in 2014/15, no to Self Assessment.
Surely you have to be doing self-assessment at that sort of income to ensure you pay the right tax - on investment income, for example??Scotty2 said:
Has anyone else just received a letter from HMRC or DWP telling you to pay back around £3k Child Benefit as you just exceeded the limit for qualification?
I knew it was coming and thought my income was going to be just below,but no, I earned slightly more so BANG we'll have all your child benefit back!
Best bit is the letter states: "We cannot tell you the amount you need to repay by the end of January, but we will impose penalties and interest on the outstanding sum..."
Why not just allow everyone 2 kidsworth and that's it?
Just been watching "Benefits Britain" so am also wiping steamed urine from the ceiling. I may be bitter that it goes to some of them!
It is a sliding scale of Child Benefit reduction between the amounts of £50k and £60k. It is not a case of just going a little over and losing it all. If your income for last year was higher than £50K after pension and other tax free contributions you should have done a self assessment, and they will reclaim the overpayment of Child Benefit via your tax code (for PAYE I guess) I knew it was coming and thought my income was going to be just below,but no, I earned slightly more so BANG we'll have all your child benefit back!
Best bit is the letter states: "We cannot tell you the amount you need to repay by the end of January, but we will impose penalties and interest on the outstanding sum..."
Why not just allow everyone 2 kidsworth and that's it?
Just been watching "Benefits Britain" so am also wiping steamed urine from the ceiling. I may be bitter that it goes to some of them!
I've been caught on this too, wife got the benefit payed to her I forgot about it, didn't put it on my return as I had never even seen it or knew how much it was. Now a letter has come through. This is the first time in my working life that my tax return has had to refect something that someone else got, bizarre. Wife doesn't work.
miniman said:
Eric Mc said:
Rather than start being smart alecky about benefits in general, perhaps we should try answering the OP's question.
What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
In my case, yes greater than £60,000 in 2014/15, no to Self Assessment. What tax year are they talking about?
Was you or your partner's income greater than £50,000 in 2012/13, 2013/14 or 2014/15
Was you or your partner's income greater than £60,000 in 2012/13, 2013/14 or 2014/15
Do you or your partner complete Self Assessment tax returns?
This area is about to hit the fan big time I can see.
If a person earned over £50,000 or £60,000 in the years 2012/13, 2013/14 AND 2014/15 (current tax year) and they were receiving Child Benefit in those years. They were not entitled to the full level of Child Benefit.
If between £50 k and £60K - they are entitled to some Child Benefit but not all.
If over £60K they weren't entitled to any.
If you were receiving Child Benefit in those years and exceeded those limits you had two choices - contact the Child Benefit outfit and tell them to cancel the payments OR contact HMRC so that you could start filling in and submitting Self Assessment tax returns so you could repay the overpaid Child Benefit through the Self Assessment system.
If you opted for the latter, the Self Assessment (SA) returns will have taken care of everything.
The problem is that there is a substantial number of people who have been dragged into the SA system purely so that they can pay back the Child Benefit.
In addition, there are many who SHOULD have contacted HMRC in order to sign up for SA and never did. The first tax year affected was 2012/13 which should have been submitted by 31 January 2014 and 2013/14 - which should be submitted in 8 days time. And now, of course, we are most of the way through 2014/15.
Those who SHOULD have applied to complete SA return and didn't could face sizeable penalties for "Failure to Notify" and "Late Submission" as well as interest on late pay back of the overclaimed Child Benefit amounts.
It will be interesting to see how all this pans out - especially with the election in May.
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