Child benefit salary over 50k under 60k

[Humdinger1]

Dear Legalbeagles

Hello- combined first greeting and question.

This is sooooo embarrassing. I didn't realise till now that if one person in a household earns over 50k but under 60k there's graduated child benefit. I thought you just fell off a cliff at 60k.

We haven't had one of those letters that are apparently winging their way to 100, 000+ people yet. We may never get one but plainly have to put matters straight.

So my husband (a lawyer!) did earn 55k for a couple of years. He's checking exact dates but then became self employed. I have 2 questions :

1. Is the best thing to do to write to the CHB dept explaining the relevant period and offering to pay the difference? How would I calculate the amount due?

2. Do mistakes like this get entered on any kind of record? I guess I'm catastrophising here but it couldn't stop him working could it (he specialises in private client work; wills, probate, LPA).

Thanks so much

Humdinger

[Amethyst]

It's very easily done - the system isn't exactly transparent. Have you done the sums to work out exactly what you should have been getting vs what you were given ? https://www.gov.uk/child-benefit-tax-calculator

Does your husband do self assessment tax returns ? - it should be calculated in there and be part of the tax bill. If not he might need to start ( unless you just cancel CB although that doesn't seem fair as you are still entitled to something for CB but as you're part way through tax year might be worth cancelling for rest of tax yr so you don't build up another years overpayment )

I'd give CB a ring and tell them you just realised you might fall into the graduated reduction category and ask the best way to sort it out going forward. There is likely to be a bill for repayment which you ( well your husband will be the liable person) should be able to pay in instalments - but I think it's better to speak to them than wait for a letter, for your own peace of mind.

And no, unless you refused to repay any overpayment and it ended up in court it shouldn't affect credit file / husbands job etc.


Just as an idea if you had one child you were claiming CB for and income for year was £55k the overpayment would be £550 ish. 3 children would be £1250 odd - works out about half xxx

[Humdinger1]

Amethyst

Thanks so much for this. Will let you know how it pans out.

Humdinger

[Amethyst]

Have you managed to get anything sorted with this yet HumDinger ?

[Humdinger1]

Amethyst

Sorry for the very late reply, but think I have good news. When I rang CB they were chilled to the point of boredom. My husband has filled in the relevant part of his self assessment (and has backdated for the previous year). I've read that this charge was so badly publicised that apparently no fines are being imposed. Hopefully that's the case - if I have any more news, will let you know.

Thanks again for your help - onwards and upwards!

Humdinger