Higher Income Child Benefit Tax Charge

Both earn over £50k, do we both need to do SA?

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My partner receives Child Benefit. We both earn over £50k. I am the higher earner and am self employed, so already complete SA and have paid the HICBTC in full each year.

My wife is on PAYE but has recently been written to by HMRC requesting that she pays HICBTC. She has called the line they asked her to, and explained the above (person on the end of the line said it was fine), but they have simply written another letter to us saying the same as the first.

Clearly she does not owe any HICBTC (as I have repaid all Child Benefit each tax year in full). It seems entirely pointless for her to complete a SA, given that I do this, but should she have? If she should have, can she be charged penalties for failure to complete SA in prior years? The recent letter (1 month old, replied to by call) is the first time HMRC have notified her that she needs to complete SA.

Replies (6)

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By Matrix
05th Mar 2018 21:17

What did HMRC request - a tax return? If so then she either needs to complete it or get it cancelled.

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By enitor
05th Mar 2018 21:27

Hi Matrix, they have requested payment of the HICBTC, payment of a penalty for failure to notify a liability and completion of a SA tax form for the past tax year.

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Replying to enitor:
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By Matrix
05th Mar 2018 21:35

Well call up again and ask for it to be cancelled. Keep calling until you speak to someone sensible who can act sensibly based on the facts. Alternatively you could write yourself or pay a professional to do so. If no luck on the phone then put this all in writing as soon as possible.

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Replying to enitor:
RLI
By lionofludesch
06th Mar 2018 07:30

Ask for an apology and make a formal complaint. Complain to your MP as well.

Paying taxes is one thing, demanding money with menaces is another.

These people are a disgrace to their profession.

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By K81
06th Mar 2018 08:50

as you have declared the child benefit on your tax return as the higher earner then no need for your wife to complete a tax return unless she meets other criteria.
HMRC have a (stupid) system whereby they write to the person who is paid the child benefit if their income is over £50,000 without checking whether they have a partner who earns more, or even mentioning this in their letter.

As others have mentioned, keep calling & complain.

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