Tax to repay - Child Benefit
Discussion
I just got stung for the entire CB my wife received in 13/14 as like the OP I inadvertently went over the threshold that year. Hold my hands up to this, my fault.
However, I contacted HMRC today who said it was too late to put the amount through my tax code for the current year and I would have to pay the full amount immediately. Is there a cut-off date after which if you submit your return any tax due cannot be adjusted through your code?
However, I contacted HMRC today who said it was too late to put the amount through my tax code for the current year and I would have to pay the full amount immediately. Is there a cut-off date after which if you submit your return any tax due cannot be adjusted through your code?
Eric Mc said:
The cut-off for having your 2015/16 tax code amended to collect underpaid 2013/14 tax would have been 31 December - so too late now.
Does the repayment of the Child Benefit mean you have to make Payments on Account for tax year 2015/16 as well?
I have not been asked to but that is not to say I shouldn't be...Does the repayment of the Child Benefit mean you have to make Payments on Account for tax year 2015/16 as well?
Legend83 said:
I just got stung for the entire CB my wife received in 13/14 as like the OP I inadvertently went over the threshold that year. Hold my hands up to this, my fault.
However, I contacted HMRC today who said it was too late to put the amount through my tax code for the current year and I would have to pay the full amount immediately. Is there a cut-off date after which if you submit your return any tax due cannot be adjusted through your code?
My sympathies, I know everyone assumes that those above the threshold will be sat on pots of cash and just pay it but I know that isn't the case for a lot caught out by this badly implemented scheme.However, I contacted HMRC today who said it was too late to put the amount through my tax code for the current year and I would have to pay the full amount immediately. Is there a cut-off date after which if you submit your return any tax due cannot be adjusted through your code?
I can see how people miss this, I am pretty rigorous with financial stuff and worked it out, diligently hived off a percentage of the CB over the year and still got stung for an additional £300.
Rebecca Bennyworth in Taxation magazine has an interesting take on an unforeseen problem with this Child Benefit tax reclaim system.
Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
Maxf said:
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??Edited by Jonathan27 on Thursday 5th February 13:13
Eric Mc said:
Rebecca Bennyworth in Taxation magazine has an interesting take on an unforeseen problem with this Child Benefit tax reclaim system.
Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
Well explained Eric Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
As I mentioned earlier in the thread my accountant has advised we continue to claim and pay back just in case of that scenario and also if anything happens to either one of us there are benefits to be already claiming it..........
If that makes sense!
Eric Mc said:
Rebecca Bennyworth in Taxation magazine has an interesting take on an unforeseen problem with this Child Benefit tax reclaim system.
Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
On the other hand, you could just claim it and treat it as an interest free loan if you breach the threshold and have to pay it back...?Here's the scenario
You or your partner THINK you will not be entitled to the benefit so you ask for the benefit to be stopped (the recommended course of action for those who are above the £60,000 threshold).
However, during the year, the income drops below the £60,000 or even £50,000 so you need some or all of the Benefit re-instated. You can apply on line to have the benefit restored.
But the Benefit will only be restored from the date the on-line application is made. It may be that the benefit could have been restored at an earlier point in the year. You cannot make that claim for the earlier amount on-line. You must contact the authorities by phone and explain the situation to them.
Jonathan27 said:
I don’t see any reason why you would do SA at that level, assuming that the income is pretty straight forward, i.e. one job on PAYE.
Tax on investment income being the obvious one. Tax relief on pensions / charity contributions being two others!Edited by Jonathan27 on Thursday 5th February 13:13
loafer123 said:
On the other hand, you could just claim it and treat it as an interest free loan if you breach the threshold and have to pay it back...?
The only problem with a loan you get the full amount up front and pay it back over time - I am stuck with the opposite problem. They want it all back straight away!Eric Mc said:
Some of the most difficult Self Assessment tax returns I completed this year were for pure PAYE only clients.
PAYE is NOT a guarantee that your tax affairs are correct. In fact, it is often a guarantee that you WON'T pay the correct tax.
Say I employed your services to do my (well my wifes) SA tax return, given your fees, would she be better off??PAYE is NOT a guarantee that your tax affairs are correct. In fact, it is often a guarantee that you WON'T pay the correct tax.
She's a deputy headteacher btw, single income - PAYE and has been for over 16 years.
Or to ask in a different direction. How time consuming is it to complete yourself. Personally I just cannot be bothered with it all and my mrs works stupid hours so filing out a SA form is on the very bottom of her agenda.
Maybe it shouldn't be.
In other countries (such as the USA) MOST people have to fill in tax returns each year and they seem to cope.
If her income is in the Higher rate Tax bracket she is probably paying the wrong tax - especially if she has some income from investments, pays into a pension or donates to charity.
And that's NOT including any potential HMRC Coding cock-ups - which are fairly common..
In other countries (such as the USA) MOST people have to fill in tax returns each year and they seem to cope.
If her income is in the Higher rate Tax bracket she is probably paying the wrong tax - especially if she has some income from investments, pays into a pension or donates to charity.
And that's NOT including any potential HMRC Coding cock-ups - which are fairly common..
dave_s13 said:
Or to ask in a different direction. How time consuming is it to complete yourself. Personally I just cannot be bothered with it all and my mrs works stupid hours so filing out a SA form is on the very bottom of her agenda.
If you have your records in order it is quick & easy if you are straightforward(ish). You will still need to get your records in order for an accountant.dave_s13 said:
No investments, no charity donations - has a teahers pension though obviously.
Is she receiving a teachers pension or paying into a teachers pension?If paying into the pension, is she 100% confident that she is getting the full and correct Higher Rate tax relief she is entitled to?
If RECEIVING a pension, is she confident that the allocation of her personal tax allowances between her salary income and her pension income has been done correctly?
GT03ROB said:
dave_s13 said:
Or to ask in a different direction. How time consuming is it to complete yourself. Personally I just cannot be bothered with it all and my mrs works stupid hours so filing out a SA form is on the very bottom of her agenda.
If you have your records in order it is quick & easy if you are straightforward(ish). You will still need to get your records in order for an accountant.For some reason I completely forgot about the Self Assessment deadline this year, I woke up in the middle of the night on Friday/Saturday and remembered about it, so just in the nick of time.
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