High Income Child Benefit Tax Charge
Posted on 20th September 2019 at 10:14
You may have to pay a tax charge, known as the ‘High Income Child Benefit Charge’, if you have an individual income over £50,000 and your or your partner receives Child Benefits.
If you are a higher rate taxpayer (over £50,000) and either you or your partner recieve child benefits, then you will have to complete a self-assessment tax return. It does not matter if the child lives with you are lives elsewhere.
If you’re affected by the tax charge, you can choose not to get Child Benefit payments, but you should still fill in the Child Benefit claim form. This will help you get National Insurance credits which count towards your State Pension.
Claiming Child Benefit also means your child will get their National Insurance number automatically shortly before they’re 16. They will not have to apply for one themselves.
You can either:
stop getting Child Benefit - sometimes known as ‘opting out’;
carry on getting Child Benefit and pay any tax charge at the end of each tax year.
For more information, please visit: https://www.gov.uk/child-benefit-tax-charge
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