High Income Child benefit Charge – Did You Know This?

Michael O'Connor

If you or your partner earns over £60,000, you may need to pay back some or all of your Child Benefit through the High income Child Benefit Charge (HICBC)

The charge applies if;

  • You or your partner received Child Benefit,
  • And the higher earner has income over the threshold.

You have options;

  • Keep receiving Child Benefit and pay the tax charge (usually via Self-Assessment) or,
  • Opt out of payments to avoid the charge – whilst still protecting National Insurance Credits & your child’s automatic National Insurance Number.

Opting out of Child Benefit Payments:

You should still fill in the Child Benefits form. You need to state on the form that you do not wish to get any payments.

This will help you;

  • Get National Insurance credits which count towards your state pension.
  • Get your child a National Insurance number without them having to apply for one. They usually get the number automatically before they turn 16.

Not sure what’s best for you? This is one area where a quick check can save you money & hassle! Get in touch with us today to find out more.