A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020
Mon/Fri 9am-8pm       Sat/Sun 2pm-8pm
Call for FREE expert advice & service info

Child Benefit and Tax

  • Fed up Dad
  • Fed up Dad's Avatar Topic Author
  • Platinum Boarder
  • Platinum Boarder
More
5 years 2 months ago #458029 by Fed up Dad
Child Benefit and Tax was created by Fed up Dad
Hi,
I am absolutely disgraced.
I have submitted my self assessment tax return albeit late and had to declare the amount of child benefit my ex was in receipt of for tax year 13/14 as we were still living together and I was the higher earner.

The amount she received was £2,449 based on 3 kids and I have to pay the same amount in tax!!! I phoned HMRC up and they have confirmed that the full payment is taxable. I told them that I expected to pay tax at 40% on this amount but surely there should be a benefit in continuing to receive it. Apparently not. So whilst my income just nudged over the threshold, my ex was earning £500 per month. The whole system is an absolute joke. It is not applied fairly to a couple where one either doesn''t work or on a low income. For those that are both high earners, they can afford to pay the tax on child benefit.

I am now stuck with a tax bill that needs paying - my ex has taken advice from her solicitor that it is my responsibility to pay. Interest is being applied now until the amount is cleared and all I can pay is £50 per month.

Sorry to rant on but this has just topped my financial position off a treat.

Please Log in or Create an account to join the conversation.

  • Unctuous
  • Unctuous's Avatar
  • Platinum Boarder
  • Platinum Boarder
More
5 years 2 months ago #458033 by Unctuous
Replied by Unctuous on topic Re:Child Benefit and Tax
The amount of CB you are entitled to is tapered above £50,000 to an entitlement of £0 at about £60,000.

If you (as husband and wife) claimed it when you were not entitled to it you have to pay it back. If the money was paid to your ex. I would love to see the logic behind making you pay it back rather than the person who received it.

Please Log in or Create an account to join the conversation.

  • Fed up Dad
  • Fed up Dad's Avatar Topic Author
  • Platinum Boarder
  • Platinum Boarder
More
5 years 2 months ago #458035 by Fed up Dad
Replied by Fed up Dad on topic Re:Child Benefit and Tax
My total income plus the cash equivalent on my company car and healthcare for 12/13 tax year totalled £62K as I had a bonus payment that year.

HMRC are not saying we have to pay it back in the sense of an overpayment, they have just clobbered me for a tax charge which is equivalent and as we were still a married couple during that year and I am the high earner, they say it is my liability too.

I wish at the time we decided not to receive the payment at all

Please Log in or Create an account to join the conversation.

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11