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TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have been given a letter that asks me to check if should

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Hello. I have been given a letter that asks me to check if should be paying back my child benefit for 2018/19 and 19/20 from hmrc. This is due to the higher earner change. I wasnt aware until this letter this change had been made and I now owe £300 for 18/19 and 1400 for 19/20. On top of this i must fill out a self assessment form to make immediate payments now and in April 2020. Plus now my household income is 140 down. This is so wrong, I am the only earner in the house and recently after many years of hard work achieved a package over 50k. 50k earnings and 8ks with of bik for a company car that I pay nearly 4k in tax on. I feel its unfair as this is our household income, next door they both earn and the household income is 99k and they still qualify for child benefit. Crazy part is the HMRC are asking my to check if I'm a higher earner after 18 months, it's the HMRC that issue the tax codes based on earnings. Why in earth did they just stop the child benefit. I have no faith left after years of hard work. Is there anything I can do as I wasnt aware of this change?
Assistant: Where are you? It matters because laws vary by location.
Customer: Bucks
Assistant: What steps have you taken so far?
Customer: Registered for a self assessment but not completed it.
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: No.

Hi, welcome to JustAnswer. My name is*****’m a barrister with 12 years of experience and I am happy to help with your question today.

Customer: replied 7 days ago.
Basically I would like to know if I can reduce these charges as I wasnt aware of this new ruling. If I had of known I would have stopped the child benefit.

Ok, tax question then. I will opt out for others.

The child benefit tax charge has been in place since January 2013 and affects anybody who claims child benefit and has an income of over £50,000. It still surprises me that many don't know about it from talking to friends and acquaintances if from no other source such as the Marin Lewis website and Mumsnet etc. It is unfair how it works but I don't make the rules so there is no point in pursuing that though I understand your frustration. You cannot have the tax charge cancelled.

The excess child benefit is clawed back by HMRC through the tax system and the amount that has to be paid back is dependent on the level of your income between £50,000 and £60,000. If you have an income of £60,000 or more, you will pay back all the child benefit. Take a look here and here for more information. There is a calculator behind the second link.

If you owe tax for 2018/19, provided you complete and submit a tax return to HMRC by 30 December 2019 you can choose to pay it back through your tax code over 12 months from April 2020. The tax owing for 2019/20 won't be payable until 31 January 2021 unless you choose to have that collected through your tax code over 12 months from April 2021. HMRC may alter your current tax code to claw back the excess child benefit being paid to you now.

Finally, your tax code is your responsibility, not HMRC's . That code determines how much tax you pay each month so it should be checked. HMRC are advised in arrears of child benefit payments.

I hope this helps but let me know if you have any further questions.

Customer: replied 7 days ago.
Thank you.



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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16667
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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