High Income Child Benefit Charge
Discussion
Arrrgghh I think I may have fallen fowl of this. Basically didn't know about it until I stumbled across a reddit post.
So obviously, we claim child benefit. I can't remember who actually claims, neither of us seem to have any correspondence/emails from HMRC about it, but regardless CB is paid to our joint account.
When we signed up we were under any threshold but overtime that was no longer the case. However the threshold is moving again and we will be under again this year. I've scrubbed through my emails for P60s and it looks like:
22/23 - OK, just under
23/24 - Over by a few k - Need to pay.
24/25 - Limit is now 60k and we'll be just under. So OK.
Wife's salary is actually over 60k nominally I think, but because she only does 4 days a week, pro-rata that is under even the old limit.
So, I think I have to pay this charge for the 23/24 year. But I think I am a bit stuck because I have to therefore do the self assessment tax return and whilst you have until Jan 31st to pay, you had to have enrolled for the SA before the 5th of October 2024 or something.
How do I fix this? I guess just ring HMRC and explain? the charge will be about £400 I think.
So obviously, we claim child benefit. I can't remember who actually claims, neither of us seem to have any correspondence/emails from HMRC about it, but regardless CB is paid to our joint account.
When we signed up we were under any threshold but overtime that was no longer the case. However the threshold is moving again and we will be under again this year. I've scrubbed through my emails for P60s and it looks like:
22/23 - OK, just under
23/24 - Over by a few k - Need to pay.
24/25 - Limit is now 60k and we'll be just under. So OK.
Wife's salary is actually over 60k nominally I think, but because she only does 4 days a week, pro-rata that is under even the old limit.
So, I think I have to pay this charge for the 23/24 year. But I think I am a bit stuck because I have to therefore do the self assessment tax return and whilst you have until Jan 31st to pay, you had to have enrolled for the SA before the 5th of October 2024 or something.
How do I fix this? I guess just ring HMRC and explain? the charge will be about £400 I think.
Otispunkmeyer said:
Arrrgghh I think I may have fallen fowl of this. Basically didn't know about it until I stumbled across a reddit post.
So obviously, we claim child benefit. I can't remember who actually claims, neither of us seem to have any correspondence/emails from HMRC about it, but regardless CB is paid to our joint account.
When we signed up we were under any threshold but overtime that was no longer the case. However the threshold is moving again and we will be under again this year. I've scrubbed through my emails for P60s and it looks like:
22/23 - OK, just under
23/24 - Over by a few k - Need to pay.
24/25 - Limit is now 60k and we'll be just under. So OK.
Wife's salary is actually over 60k nominally I think, but because she only does 4 days a week, pro-rata that is under even the old limit.
So, I think I have to pay this charge for the 23/24 year. But I think I am a bit stuck because I have to therefore do the self assessment tax return and whilst you have until Jan 31st to pay, you had to have enrolled for the SA before the 5th of October 2024 or something.
How do I fix this? I guess just ring HMRC and explain? the charge will be about £400 I think.
Don't be chicken, give them a call.So obviously, we claim child benefit. I can't remember who actually claims, neither of us seem to have any correspondence/emails from HMRC about it, but regardless CB is paid to our joint account.
When we signed up we were under any threshold but overtime that was no longer the case. However the threshold is moving again and we will be under again this year. I've scrubbed through my emails for P60s and it looks like:
22/23 - OK, just under
23/24 - Over by a few k - Need to pay.
24/25 - Limit is now 60k and we'll be just under. So OK.
Wife's salary is actually over 60k nominally I think, but because she only does 4 days a week, pro-rata that is under even the old limit.
So, I think I have to pay this charge for the 23/24 year. But I think I am a bit stuck because I have to therefore do the self assessment tax return and whilst you have until Jan 31st to pay, you had to have enrolled for the SA before the 5th of October 2024 or something.
How do I fix this? I guess just ring HMRC and explain? the charge will be about £400 I think.
I have this issue. Some advice I found on the web was to just collect the child benefit and then sort it out after, because its just so hard to sort properly, particularly where you are skirting on the edge of the cut off, which has changed. Also, I think you dont lose it all once you are over the limit, its a % over the limit?
OK so you then have to pay money back, but you've had the money. Im not saying this is right, but its one approach.
OK so you then have to pay money back, but you've had the money. Im not saying this is right, but its one approach.
covmutley said:
I have this issue. Some advice I found on the web was to just collect the child benefit and then sort it out after, because its just so hard to sort properly, particularly where you are skirting on the edge of the cut off, which has changed. Also, I think you dont lose it all once you are over the limit, its a % over the limit?
OK so you then have to pay money back, but you've had the money. Im not saying this is right, but its one approach.
Its a sliding scale. So it was 100% of the benefit to 50k and then that slides to 0% at 60k. Its now been shifted up by 10k so presume the sliding scale is now 100% up to 60k and 0% at 70k.OK so you then have to pay money back, but you've had the money. Im not saying this is right, but its one approach.
From what I can gather on the way it is supposed to work: They just blanket pay everyone who applies for CB the full hit. Its then on you to work out if you need to pay any back and then fill in the self assessment and they'll then work out what to charge you to drop the benefit to the effective rate.
It seems totally wild that this is how its done. It feels like some kind of make work scheme.
Otispunkmeyer said:
TwigtheWonderkid said:
worsy said:
Don't be chicken, give them a call.
Always good advice if you fall fowl. I'm also here to egg you on to call them. seismic22 said:
Remember pension contributions are deducted from what they consider to be your income. Ie, if you earn 70k but make 10k worth of pension contributions in the same year then you will be entitled to the full child benefit charge and will owe HMRC nothing.
Not, apparently, if the contribution is taken from gross pay.Eric Mc said:
Otispunkmeyer said:
TwigtheWonderkid said:
worsy said:
Don't be chicken, give them a call.
Always good advice if you fall fowl. I'm also here to egg you on to call them. 
ETA: wait... spotted it! "Fallen fowl...."
birds on the brain.Edited by Otispunkmeyer on Wednesday 22 January 11:44
Otispunkmeyer said:
seismic22 said:
Remember pension contributions are deducted from what they consider to be your income. Ie, if you earn 70k but make 10k worth of pension contributions in the same year then you will be entitled to the full child benefit charge and will owe HMRC nothing.
Not, apparently, if the contribution is taken from gross pay.https://www.gov.uk/child-benefit-tax-charge
Zigster said:
Otispunkmeyer said:
seismic22 said:
Remember pension contributions are deducted from what they consider to be your income. Ie, if you earn 70k but make 10k worth of pension contributions in the same year then you will be entitled to the full child benefit charge and will owe HMRC nothing.
Not, apparently, if the contribution is taken from gross pay.https://www.gov.uk/child-benefit-tax-charge
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