Child benefit charge HICBC

I’ve been in contact with HMRC since been caught in the HICBC since 2019,i as many other people didn’t not realise about this charge and that was an honest mistake as I’ve been PAYE since leaving school. I arranged a accountant to fill my self assessment as I didn’t want to make a mistake,my original discovery assessment was for nearly 4 k,there was a mistake made by HMRC which lead to a double assessment which then increased the the amount to nearly 9k with extra penalties etc. This took nearly 6 months to resolve with nearly 50 phone calls to HMRC,my question is why am I responsible for this mistake and been hit with nearly £1500 in penalties and interest I’ve payed nearly £4300 but I find it wrong that I should pay any more of the charges due to HMRC mistake in the double assessment. Also you can not pay via credit cards I’ve had to borrow money from family to pay of this bill,and I’m seriously struggling to pay of this remaining balance HMRC refuse to make reasonable payment plan with me,and yet I’m still getting late payment fees and interest. The stress and anxiety this has caused me over the last few years is really leading me into a dark place,I’ve worked all my life payed my taxes support my family and 4 kids never claimed of the system apart from family allowance and now in a spiral of debt this seems so unfair yet to couples can earn £49.999 each PA and keep all of there family allowance something is very wrong in the system.

I doubt you will get much help about a government policy change here but perhaps it's something to raise with your MP?

Thanks for the reply that’s not a bad idea

Hi. If a salary is nearly 60K before tax, will you still have to pay the whole of the child benefit charge after pension contributions are taken into account? Would you advise to not have it at all at this point? Thanks

Help please. My gross salary has just risen to £55000 before tax. My pension contributions are £4900 via salary sacrifice. What would my HICBC be? Do I need to register for self assessment?

Hi woogs5426,

If you are in receipt of child benefit and you are the higher earner who earns £60K a  year then you would pay the full child benefit received back. You would need to decide if you still wish to receive child benefit. 

Thank you.

Hi nictwitch,

If salalry sacrifice then the pension contributions are already taken into account in the £55,000 income. If you income is £55,000 then you would repay 50% of the child benefit received. Yes you would need to register for Self Assessment.

You can register at:

Register for Self Assessment if you are not self-employed

Thank you.