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High Income Child Benefit Charge

For anyone with taxable income of more than £50,000 who is a parent and claiming Child Benefit, there is a clawback of 1% of the benefit for every £100 of income over £50,000. The benefit is lost completely once the higher-earning parent’s income exceeds £60,000.

Parents involved in their own business can structure their remuneration so as not to lose Child Benefit and we would be happy to assist with remuneration planning.

The High Income Child Benefit Charge can also increase payments on account, so in some circumstances it may be better to stop receiving the benefit where the charge applies.  Where it later transpires that the benefit could have been claimed without the charge applying, the Child Benefit Office will make backdated payments if a claim is made.