Q: How do I down-grade from paying for iCloud to free iCloud? Anybody?

You can cancel an iCloud storage upgrade within 15 days of buying:

Apple have made this as difficult as possible. However two posters have managed to achieve this. Elizellen was able to use Express Lane to get a refund:

https://discussions.apple.com/message/19323996#19323996

However if you use Express Lane may find you cannot proceed without entering a hardware serial number which is still eligible for AppleCare.  julia22 managed to find a way round that by phoning them - please see this post:

https://discussions.apple.com/message/16968425#16968425

it gives the USA number - if you don't live there you will have to find an equivalent number from the 'Contact Us' link at bottom right of this page.

If it is more than 15 days since you purchased the storage you cannot cancel it for a refund; you can downgrade your plan as from your next renewal date. Please see

http://help.apple.com/icloud/#mmd602084a

and expand 'Downgrade your storage for the next plan year'.

How do I down grade my iCloud?

See this support document for downgrade information. iCloud storage upgrades and downgrades - Apple Support