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Child benefit advice

High Income Child Benefit charge

Do you, or your partner, have an individual income of more than £50,000 and one of you gets Child Benefit or contributions towards the upkeep of a child? If the answer is yes then you may be liable to this new tax charge..

If you are liable and have received a Child Benefit payment since 7 January then you must register for Self Assessment by 3 October 2013 to pay the charge.

You will be affected by the High Income Child Benefit charge if during a tax year any of the following applies to you:

    • you have an individual income of more than £50,000 and are entitled to receive Child Benefit
    • you have an individual income of more than £50,000 and live (or have lived) with a partner who’s entitled to receive Child Benefit
    • both you and your partner have an income of more than £50,000 per year, you have the higher income and one of you is entitled to receive Child Benefit

You will also be affected if during a tax year you have an individual income of more than £50,000 and both of the following apply:

  • someone else is entitled to receive Child Benefit for a child who lives with you
  • they’re entitled because they contribute at least an equivalent amount of Child Benefit towards the child’s upkeep, for example pocket money or clothesIt doesn’t matter if the child that is living with you is not your own child.

Your income will generally be your income before tax and deduction of ‘Personal Allowance’.

So who counts

For the High Income Child Benefit charge, a partner is one of the following:

  • a person you are married to and you are living with – or have lived with during a tax year – and not permanently separated from
  • a civil partner you are living with – or have lived with during a tax year – and not permanently separated from
  • a person you are living with – or have lived with during a tax year – as if you are married or a civil partner

If you need more advice please contact us on 01704 546000.

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