[Scott.T]

As of this month Child benefit for those earning £50,000 is being reduced by a % down to zero if you earn £60,000

Now I would say the easiest and cheapest way to work this out, is for the HMRC to do the 'simple' maths for the High Earner bracket and just adjust the Child Benefit by the required %.....simples i.e your earn £51,000 (after pension/tax free contributions) thats a 10% reduction in child benefit payment....how hard can it be. Just continue to pay the Child Benefit as per usual just 10% less.


BUT, their not doing this.
Instead if you earn over £50,000 you have to register for Self-Assesment, despite your employer and HMRC already running a PAYE scheme for you.
HMRC then continue to pay you the 'FULL' amount of Child Benefit and after you have submitted your self-assesment for that tax year, they then work out the % you owe and you pay it back !!!!!!! either as a lump sum or via the following years PAYE (so they have got the capability to collect via PAYE)......madness.

Why the hell do you need to submit a self-assesment when they already know your earnings through the PAYE scheme !!!!!!!

Not only that, they ask 'YOU' to tell them how much child benefit you recieved in that tax year. Surley they know that already as they bloody gave it to you.


I see the whole procedure as madness and I would imagine a high % of High Earners will not register for Self-Assesment and continue to get the full amount. Therefore HMRC will pay out to people who are not entitled costing ££££££ or spend ££££££ trying to persue people who owe HMRC.

A number of people will just opt out, so maybe the opting out offsets the ££££ required to persue those not entitled to the full amount.

TOTAL MADNESS (job creation more like.......)