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.
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