Search news archive

 

 

t: 023 80 254 900

f: 023 80 254 906 

e: info@dtlimited.co.uk--------------91 Lakewood Road, Chandlers Ford, Eastleigh, SO53 5AD

Child Benefit charge if income exceeds £50,000

Source: HM Revenue & Customs | | 13/08/2019

The High Income Child Benefit charge (HICBC) applies to a parent whose income exceeds £50,000 in a tax year and who is in receipt of Child Benefit. If both parents have an income that exceeds £50,000, the charge will apply to the highest income earner. The charge claws back the financial benefit of receiving Child Benefit either by reducing or removing the benefit entirely.

If you or your partner have exceeded the £50,000 threshold during the last tax year (2018-19) then you must take action. If you or your partner continue to receive Child Benefit (and earn over the relevant limits) you must pay any additional tax owed (the HICBC), for 2018-19, on or before 31 January 2020. If you have exceeded the limit for the first time and do not currently submit a tax return you will be required to do so.

The HICBC is levied at the rate of 1% of the full Child Benefit award for each £100 of income between £50,000 and £60,000. If your income exceeds £60,000, the amount of the charge will equal the amount of Child Benefit received.

HMRC’s guidance on Child Benefit stresses that if the HICBC applies to you or your partner, it is still worthwhile to claim Child Benefit for your child. This can help to protect your State Pension and will make sure your child receives a National Insurance number. However, you can still choose to keep receiving Child Benefit and pay the tax charge through self-assessment or elect to stop receiving Child Benefit and not pay the charge.



 

Latest News

Breathing space to help those in debt
11/02/2020 - More...
HM Treasury has confirmed that the new 'breathing space' scheme to help those with problem debts will become operational next year. The scheme will provide legal

Scottish Income Tax rates announced 2020-21
11/02/2020 - More...
Public finance minister Kate Forbes delivered her first Budget statement to the Scottish Parliament on 6 February 2020. This followed the shock resignation of finance minister,

Still time to utilise annual tax-free allowance
11/02/2020 - More...
We would like to remind our readers that there is still time to use the annual exemption for Capital Gains Tax (CGT). In the current 2019-20 tax year, this amounts to

Checking your NIC records
11/02/2020 - More...
HMRC offers an online service to check your National Insurance Contributions (NIC) record online. In order to use the service, you will need to have a Government Gateway account.

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2020 - David Tilsley Limited
Cookie Policy |  Privacy Notice
Home     About us   Contact us