We act for the wife out of a couple with two children.
The wife's income is just over the child benefit withdrawal threshold. The husband's income is more.
The wife is on self-assessment and the husband is not.
They have just realised that each thought the other had repaid the overpaid child benefit, but infact neither has.
The wife thinks that only she can do this now, and also that only she can stop the receipt of tax credits. However when we read up on this it seems the highest earner has to make the repayment. If we try and amend the wife's return for it, the calculation does not result in very much of it being repaid.
Are we correct in thinking that the only way to repay the overpaid benefit is for the husband to register for self assessment and declare the overpayment and this will result in penalties (including the £15 a day)?
Who can stop the receipt of payments going forward please?