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Child Benefit

Working out tax due on CB

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Simple task.  Maybe I'm just tired, but I have worked out one figure, my client worked out another and HMRC is coming up with another.  Please would some kind soul work this out for me?

Client has earned £52,379.78 in year ended 17/18

Child Benefit was claimed of £1,788.80

How much does she owe for tax on the overclaimed CB?  and please show workings ;-)

Thank you in advance.

Replies (6)

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By Duggimon
07th Nov 2018 17:05

23% of £1788.80

£2,379.78 over £50K - £2,3xx/£10,000 = 23%

Gift aid will move the threshold so if you have any of that then adjust accordingly.

Thanks (2)
Replying to Duggimon:
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By The Accountant
07th Nov 2018 17:29

Thank you. I was doing 23.79%. Told you I was tired!
Quite generous of HMRC to round it down.

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Replying to The Accountant:
RLI
By lionofludesch
07th Nov 2018 18:08

Yes, there are 100 1% steps. It's not a slope. It's a staircase.

It leads to massive marginal rates as you click over from £xxx99.99 to £xxx00.00 if you have three sets of quins.

Pensions will reduce your relevant |(to HICB) income too.

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Replying to The Accountant:
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By lionofludesch
07th Nov 2018 18:14

The Accountant wrote:

Thank you. I was doing 23.79%.

What did your client come up with ?

Just out of interest, like ................

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Replying to lionofludesch:
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By The Accountant
07th Nov 2018 18:47

£268.80 and I have no idea how she arrived at that. There are no other tax breaks against her income. She also has to repay the tax allowance received on transferring 10% of her husband's personal allowance. So not a happy bunny. It was a one off unusually high income year, normally grosses around £35,000- £37,000.

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Replying to The Accountant:
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By lionofludesch
08th Nov 2018 08:48

The Accountant wrote:

£268.80 and I have no idea how she arrived at that.

Ach - she made it up.

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