{"id":2069,"date":"2021-10-01T14:29:31","date_gmt":"2021-10-01T14:29:31","guid":{"rendered":"https:\/\/srcadvisory.com\/?p=2069"},"modified":"2021-10-01T14:29:34","modified_gmt":"2021-10-01T14:29:34","slug":"high-income-child-benefit-charge","status":"publish","type":"post","link":"https:\/\/srcadvisory.com\/high-income-child-benefit-charge\/","title":{"rendered":"High Income Child Benefit Charge"},"content":{"rendered":"\n

Child benefit is a tax-free benefit for parents, but if you or your spouse earn over \u00a350,000, you might need to pay some or all of it back to HMRC \u2013 this is called the High Income Child Benefit Charge.
\u00a0
The current year 2021\/22 rates are:
\u2022 \u00a321.15 a week for your eldest child
\u2022 and \u00a314 a week for each of your other children
\u00a0
The person who has the higher income: either you or your partner is responsible for declaring this to HMRC.\u00a0 Please remember that It doesn\u2019t matter who actually received the Child Benefit in their bank account.
\u00a0
What are the pluses and minuses of continuing to claim Child Benefit?<\/strong>
\u00a0
The pluses of claiming Child Benefit:<\/em><\/strong>
\u00a0
\u2022 You get National Insurance credits \u2013 which count towards your state pension (very important if you\u2019re on a low income) <\/p>\n\n\n\n

\u2022 Your child will\u00a0 automatically receive a National Insurance number just before they reach 16 \u2013 they won\u2019t need to apply for one themselves <\/p>\n\n\n\n

\u2022 Your Child Benefit payments are \u201cprotected\u201d in case your income ever drops under \u00a350,270 (because of unemployment, etc.)
\u00a0
The minuses of claiming Child Benefit:<\/em><\/strong>
\u00a0
You may have to return some or all of it to HMRC if you are caught by the High Income Child Benefit Charge.
\u00a0
Your options:<\/strong>
\u00a0
\u2022 Continue to receive Child Benefit and pay any High Income Child Benefit Charge.at the end of each tax year
\u2022 Stop getting Child Benefit entirely \u2013\u00a0https:\/\/www.gov.uk\/child-benefit-tax-charge\/stop-child-benefit<\/a>
\u2022 Still fill in the Child Benefit claim form but choose to not get the Child Benefit payments (the best option if you would have to pay High Income Child Benefit Charge.)
\u00a0
With the third option you get all the benefits but you don\u2019t need to worry about filing a tax return or paying the High Income Child Benefit Charge.
\u00a0
You can also restart your child benefit claim at any time if you have previously stopped it.
\u00a0
Should you have any questions regarding Child Benefit an the High Income Child Benefit Charge, please contact your usual SRC-Time account manager.<\/p>\n\n\n\n


\u00a0SRC-Time are one of the South East\u2019s leading accountancy firms in advising\u00a0on all aspects\u00a0 of\u00a0business,\u00a0taxation\u00a0and corporate finance\u00a0and we\u00a0can\u00a0assist in any issue raised above<\/p>\n\n\n\n

Our expert team is available to provide you with advice and can be contacted on 01273 326 556 or you can drop us an email at info@src-time.co.uk<\/a>  or speak with an account manager to get any process started.<\/p>\n","protected":false},"excerpt":{"rendered":"

Child benefit is a tax-free benefit for parents, but if you or your spouse earn over \u00a350,000, you might need to pay some or all of it back to HMRC \u2013 this is called the High Income Child Benefit Charge.\u00a0The current year 2021\/22 rates are:\u2022 \u00a321.15 a week for your eldest child\u2022 and \u00a314 a […]<\/p>\n","protected":false},"author":4,"featured_media":2070,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/2069"}],"collection":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/comments?post=2069"}],"version-history":[{"count":0,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/2069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media\/2070"}],"wp:attachment":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media?parent=2069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/categories?post=2069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/tags?post=2069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}