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

Search Archive


Child Benefit claw-back

Source: HM Revenue & Customs | | 08/05/2018

The High Income Child Benefit charge came into force in January 2013 and applies to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. 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 (2017-18) then you must take action. Where both partners have an income that exceeds £50,000, the charge applies to the partner with the highest income.

Taxpayers who continue to receive child benefit (and earn over the relevant limits) must pay any tax owed for 2017-18 on or before 31 January 2019. If the relevant partner is not currently registered for self assessment they must do so by 5 October 2018.

The child benefit charge is charged at the rate of 1% of the full child benefit award for each £100 of income between £50,000 and £60,000. For taxpayers with income above £60,000, the amount of the charge will equal the amount of child benefit received.

Planning notes:

HMRC’s guidance on Child Benefit stresses that if the High Income Child Benefit charge applies to you or your partner it is still worthwhile claiming Child Benefit as it can help to protect your State Pension and will make sure your child receives a National Insurance number.

However, taxpayers still have the choice of whether 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.



25125805 m

 

 

Start ups require a quick response and have lots to do quite apart from the administrative setup of the business.  We provide a complete service.

Read more...

13282222 m

As a general practice we have expertise in a wide range of industries.  We are also statutory auditors, enabling us to prepare reports where that status is required. 

Read more...

24961532 m

Certainty of costs enable planning and confidence.  We have insurance schemes available.

Read more...

25332423 l

 

 

We provide a range of software to help run your business and enable easy interaction with us.

Read more...

Membership

 

About Us

Established in 1991 based in Epsom Surrey, CWM use technology to its fullest extent enabling us to work with clients based anywhere, with maximum efficiency resulting in lower costs.

Contact US

1a High Street
Epsom
Surrey
KT19 8DA
01372 727333

This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.cwmaccountants.com

Follow Us