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Posted Tue, 09 Jan 2024 21:28:00 GMT by
I knew in October 2022 that I would for the first time exceed net income of £50k. That being so, I notified HMRC of cancellation of Child Benefit from then. For FY 2022-23 I received £942 of Child Benefit (2 children), having opted out in October 2022. My net adjusted income was £56513, meaning I had an entitlement to receive 35% of the total Child Benefit for the year. The total child benefit for the year would be approx. £1880. 35% of that is £658. As I received £942 of child benefit, I expected to be liable for £284 of HICBC (i.e. £942 received, less £658 entitlement). Instead, HMRC have calculated that I owe £612 for HICBC. The HMRC advisor I spoke to says this is because the HICBC is based on Child Benefit actually received for a year. But I have found guidance on HMRC website that says the HICBC will be equivalent to some/all of the Child Benefit that a person is entitled to receive. So my position remains that I was entitled to receive c. £1880 per year, and I remain entitled (taking into account income above the £50k threshold) to 35% of that amount, i.e. £658. How do I get this reflected in my self assessment tax return?
Posted Wed, 10 Jan 2024 15:59:33 GMT by Clive Smaldon
Im not HMRC...Im a tax accountant...sorry Catherine, your logic is incorrect, the calculation is to work out the amount you are entitled to based on income, then take off the amount received and the difference to be paid to HMRC, full rates for the year dont come in to it, thats the way it is, and always has were, in the legislation's eyes never entitled to the £1880 in full for the year, only the reduced amount after the addback.
Posted Mon, 15 Jan 2024 20:19:56 GMT by
Thanks very much for the clarification Clive, I must admit I have found it incredibly frustrating figuring this out. The HMRC guidance on the high income charge is definitely not as clear as I think it should be! Your help is appreciated.
Posted Wed, 17 Jan 2024 07:38:37 GMT by HMRC Admin 25
Hi Catherine Gallagher,
If you have entered Child Benefit correctly on your return, the amount your statement calculates as owed should also be correct.
To allow us to review and amend your return, and give specific advice on your amounts calculated, contact us by webchat or phone here:
Self Assessment: general enquiries.
Thank you.

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