HMRC warning over £3,150 benefits repayments

Staff
By Staff

A taxpayer contacted HMRC as they had received a letter about a bill they had to pay

HMRC has provided guidance on how to get in touch if you have queries about a charge that could amount to thousands of pounds. A taxpayer reached out to the group after receiving a letter instructing them to pay the High Income Child Benefit Charge.

This charge applies if you’ve claimed the DWP benefit and your income exceeds certain limits. For the current tax year, the charge kicks in once either you or your partner’s individual income surpasses £60,000 annually.

For every £200 earned above this threshold, 1 per cent of your Child Benefit claim must be repaid, meaning the entire sum must be returned once your earnings reach £80,000 or more. At present, Child Benefit stands at £26.05 weekly for your eldest or only child, and £17.25 weekly for each additional child.

READ MORE: Major State Pension age change to hit those born on these dates

This implies that if you had three children and were required to repay the full amount, you’d need to return almost £3,150 a year. The repayment can be made through PAYE with a change to your tax code or via self-assessment, depending on your circumstances.

The person who contacted HMRC reported an “error” when attempting to pay the charge through PAYE. In response, the tax department advised them to ring the helpline regarding the issue.

However, the customer stated they had tried this approach but had been on hold for “almost an hour without success”. HMRC then outlined some specific timeframes for when to call.

The group said: “Sorry you’ve not spoken to an adviser yet. Our phone lines open at 8am until 6pm Monday to Friday, and are usually less busy between 8am and 9am.”

For any queries regarding income tax or PAYE, you can ring HMRC on 0300 200 3300. The department is also able to offer advice over the phone about tax overpayments or underpayments.

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