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Where Taxpayers and Advisers Meet

Salary over 50K - Tax to be paid on Child Benefit

yus786
Posts:4
Joined:Mon Apr 16, 2012 9:03 pm
Salary over 50K - Tax to be paid on Child Benefit

Postby yus786 » Sun Apr 23, 2017 2:07 pm

Hi

After some advice please. I think I’ve cocked up here. (not after any sympathy ). I was expecting the HMRC to write to me, but I think I need to take care of this myself?

Basically, I think I owe ‘tax’ on the Child Benefit I have received as my salary is over £50K

Here is the breakdown

2015/2016: Total Gross - £51880.02
2016/2017: Total Gross - £52648.08

It only occurred to me as I’ve had a further increase this April (will take my Gross to over £56K).

I am still getting Child Benefit for 1 child. He’s leaving school this year but off to 6th Form for A levels, so I will continue to get CB for another 2 years

1. What should I do? Do I contact the HMRC?
2. Any idea what I will owe? I’m assuming I’ll have to pay penalty for 2015/2016?

Many thanks

greybags1
Posts:47
Joined:Tue Jan 31, 2017 10:41 am
Location:NE Scotland

Re: Salary over 50K - Tax to be paid on Child Benefit

Postby greybags1 » Fri May 05, 2017 10:06 am

Do you make any personal pension contributions to an approved UK pension scheme? Do you make any donations under gift aid to any UK registered charities? These 'grossed up' items reduce your 'income' for the HICB charge.

See link re what you may owe - https://www.gov.uk/child-benefit-tax-calculator

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Salary over 50K - Tax to be paid on Child Benefit

Postby robbob » Fri May 05, 2017 11:29 am

2015/2016: Total Gross - £51880.02
2016/2017: Total Gross - £52648.08
it may be the same amounts, but you need to use taxable pay totals rather than gross pay totals. also any other forms of taxable income may affect the figures eg company car benefit.

Presuming you don't have any adjustments to the calcs needed as mentioned by greybags or ref the above notes then the amount due back will be reasonably modest probably less than 1k all in, you will have to inform hmrc asap and get the tax returns that will be issued (if adjusted income is over the 50k) submitted asap (2016 at least asap)

yus786
Posts:4
Joined:Mon Apr 16, 2012 9:03 pm

Re: Salary over 50K - Tax to be paid on Child Benefit

Postby yus786 » Fri May 05, 2017 11:34 am

Many thanks. All done. Have even paid over for 2015/16 with interest (£2.35)

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Salary over 50K - Tax to be paid on Child Benefit

Postby robbob » Fri May 05, 2017 11:46 am

wow that was quick - out of interest - was there any way to avoid the need to complete a tax return ?

yus786
Posts:4
Joined:Mon Apr 16, 2012 9:03 pm

Re: Salary over 50K - Tax to be paid on Child Benefit

Postby yus786 » Fri May 05, 2017 11:56 am

No, i had to complete


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