High Income Child Benefit Charge
August 21, 2019
Do you or your partner receive child benefit?
Did you know that you may incur a high income child benefit charge if either you or your partner earn above £50,000?
Child Benefit is available to parents who are responsible for bringing up a child. A higher amount of £20.70 a week is paid for the first child and £13.70 for other children.
However, you may incur an income tax charge if you or your partner's adjusted net income exceeds £50,000:
• If your income is between £50,000 and £60,000, the income tax charge will be 1% of your Child Benefit for every £100 of income between £50,000 and £60,000.
For example, if your adjusted net income is £55,000, you will be charged 50% of the child benefit received.
• If your income is over £60,000 the charge will be equal to the full amount of your Child Benefit.
The charge payable is calculated through your Self-Assessment and it is your responsibility to inform HMRC.
Our Self-Assessment completion starts from £75 + VAT, get an instant quote
today!
Share
You might also like
If you sell used, second-hand, or refurbished goods, the VAT margin scheme could save your business money — but it’s often misunderstood.
Thinking about closing your company? You’re not alone. Whether your ecommerce venture didn’t go as planned, you’re moving on to a new idea, or you simply no longer need the company — it’s important to close it properly.
Selling merch is one of the most exciting ways to turn your audience into a real business. Hoodies, mugs, digital downloads, exclusive drops — it’s all part of building your brand.
But behind the scenes? There’s payments, fees, taxes, and admin… and that’s where things can get messy.