#50 Bloody Taxman

My wife does not work. We are fortunate enough to be able to live off my salary, although we make sacrifices to enable this - ie we've had 1 foreign holiday in 6 years, barely eat out etc. We're very happy with our situation.

However, my wife's time now not working will mean she does not get a state pension. There are a minimum number of years needed to be entitled to this.

Whilst claiming child benefit, which she is entitled too, this adds to her NI contributions and therefore towards the number of years that count towards her state pension.

However, as I earn over the £50k threshold and we are married I have to pay back what she has received.

*Don't get me started on why this is based on the highest earners income rather than household - it's a family benefit for gods sake. A couple earning £100k between them, £50k each, will not repay a penny.

Anyway, first world, or 40% earner problems I guess, we are lucky to even have that annoyance.

So every year I have to submit a self assessment due to this.

Anyway, that's the context.

Last year we got hit with an unexpected £1700 tax bill because we had underpaid in tax 2 financial/3 calendar years previously, but this has not been caught up in the system yet. It was clear we had upon review but still hard to swallow.

This financial year I have been paying back the child benefit from last year as well as the current year, so double tax. It's been a big hit.

However, upon completing my self assessment the computer tells me I owe £4700!!!!!! for this financial year.

I've spoken to HMRC and they first believed it was due to my student loan, which I repaid early in the FY but the numbers seem to stack up.

Then they thought it was because the incorrectly changed my tax code for one month, which gave me a take home of an extra £1,100 one month. But that still leaves £3,600 un-accounted for.

I was left with, well you must have just under-paid! I have paid £25,000 in tax this year, have been on a tax code of only 319 all year and have not changed my circumstances. I cannot have just under-paid by £300 a month for the whole year and no-one, myself included, notice it.,

Anyway, I now have to wait until early June when they will have reviewed my file apparently.

Fingers crossed I'm not stuffed with this, it'll be a crusher.

Anyway rant over.

Thanks

Brian