High Income Child Benefit Tax Charge – what you need to know

Child Benefit

 

 

If either you or your partner have an income of more than £50,000 a year before tax, you will have to pay back some (or all) of your Child Benefit in the form of extra Income Tax.

 

 

 

If one partner earns between £50,000 an £60,000 a year before tax, then you are liable to repay a percentage of your Child Benefit. You will still receive the full amount; however, the higher earner will be liable for additional Income Tax in order to repay the portion of Child Benefit they are no longer entitled to. You will be required to pay back 1% of your family’s Child Benefit for every extra £100 you earn over £50,000 each year.

 

In order to do this, the higher earner will need to fill in a Self-Assessment tax return for HMRC to calculate the amount of extra Income Tax owing.

 

If either you or your partner have an income of more than £60,000 a year before tax, you will have to repay all of your Child Benefit as Income Tax.

 

For more information go to https://www.gov.uk/child-benefit-tax-charge