Thanks for the reply, yes that rings true.
So I have already had a Tax saving, so I can't use my pension contribution to offset my salary when filling in the SA for the 'Child Benefit' Charge.
Probably a good job my missus is using the Child Benefit for the right reasons (the children) and we haven't spent it all. So we at least have some to cover any 'Child Benefit' Charge....I read this as additional taxation.
Why HMRC can't work this all out themselves with a simple algorithm on the PAYE system is baffling to me.
I've never received any official notification of this change in policy, only what I have read online or seen post budget's.
Therefore, I reckon :
- 80% of child benefit claimants who's Salary is over the lower threshold know nothing about it and carry on receiving. I can only assume at some point HMRC will call this in and fine people.....at huge expense to the tax payer
- 10% have opted out, so HMRC win
- 10% are 'trying' to complete a SA in the correct manner
It's made difficult for me as we get a bonus each year, which we don't get until March. So at the start of the year I have no indication whether not we will breach the Child Benefit earnings threshold.