Totally agree. Hence I have already stopped our CB claims. My problem with is is...Seems only fair.
The High Income Child Benefit Charge
The High Income Child Benefit Charge (HICBC) was introduced in January 2013, it is a tax charge that applies to anyone with an income over £50,000 who gets Child Benefit, or whose partner gets it.
How the charge works
Anyone who has to pay the charge will need to pay an amount equivalent to some or all of the Child Benefit that they or their partner is entitled to receive. The tax charge increases gradually for taxpayers with incomes between £50,000 and £60,000.
The amount to pay depends on an individual’s ‘adjusted net income’, and the amount of Child Benefit the claimant is entitled to. Adjusted net income is total taxable income minus certain tax reliefs, for example for: trading losses (for the self-employed), Gift Aid charity donations, and pension contributions.
The charge is equal to one per cent of a family’s Child Benefit for every £100 of income that is over £50,000 each year. If an individual’s income is over £60,000, the charge will equal the total amount of the Child Benefit.
Families can use the Child Benefit calculator to work out how much tax they may have to pay.
Their processes needs some serious review!!Got hit with this a long time ago. I would be careful, whilst you can cancel the benefit, it affects your partners NI contributions, so they will have less of a pension and stuff from what I am aware.
Our accountant told us it was better to continue claiming the money and just pay it back to ensure your NI contributions are met. My only issue with it, is that if you're both earning under 50k eg 49k you can claim it. So a family household could be earning 98k and still be entitled to it, but a single working parent of a family earning over 50k and you're penalised.
I know right. Don’t get me wrong, if a household has an income of 50k+, in theory, they shouldn’t need the CB. I agree with that, and cancelled our CB now. Just annoying to be asked for back payment for a legislation that came in 2013, after my youngest was born. They did not communicate anything with me about this back in 2013 despite having all my PAYE information monthly, correctly and on time.This is such an unfair tax, if you earn over the threshold you get deductions
if partner one earns 30k and partner 2 30k you are earning over the limit as a household but don’t pay.
Plus they get 2* tax free allowances, the tax system needs a complete overhaul.
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