High income child benefit charge
- Thread starter eder
- Start date
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.
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.
Totally agree. Hence I have already stopped our CB claims. My problem with is is...
My youngest was born in 2011, this new tax charge come into place in 2013 - I was oblivious to it.
HMRC has had my PAYE information promptly and on a monthly basis - they had ample opportunity to contact me...they waited this long and is now demanding back payment.
Again, I agree with you, I am in a fortunate position to earn well and agree that should not necessarily need the CB, but is frustrating how crap their processes can be.
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I agree with it, my only gripe is, because the factory production worker (low wage) with a couple of kids claims child benefit the high earner then thinks that he/she should get it too when really it should just be a helping hand benefit for the low income.
My only gripe is, people who decide to have a football team size family and draw a tidy sum off it when in truth they can't afford a large family topped up to the high hilt. Then someone will say, well at least he's working but in truth he's getting a fortune in top up benefits probably more than if he wasn't working.
I would make a rule were you can claim for your first two children but if you have a 3rd you get no CH that's your choice and rules, work overtime.
Theres a young woman near me she's 4 kids and only 24 kids 2 different s father's. She recently said to my daughter said she wants as many as she can and we f**kin call asylum seekers.
My only gripe is, people who decide to have a football team size family and draw a tidy sum off it when in truth they can't afford a large family topped up to the high hilt. Then someone will say, well at least he's working but in truth he's getting a fortune in top up benefits probably more than if he wasn't working.
I would make a rule were you can claim for your first two children but if you have a 3rd you get no CH that's your choice and rules, work overtime.
Theres a young woman near me she's 4 kids and only 24 kids 2 different s father's. She recently said to my daughter said she wants as many as she can and we f**kin call asylum seekers.
I've got my self assessment to do for this last financial year and I know I've got to pay some back for the past year.
It p1sses me off that my partner is on minimum wage for a few days work in a food waste prevention & food bank (she loves the job as it is helping people) so probably earns around £20k a year depending on days worked whereas I've been just over the £50k limit since the start of last year so I will have to pay some back which I do think is a little unfair. Now if I earned £50k or less and my partner did, we wouldn't have to pay any back. Surely it should be the other way around, and the couple earning more per household should have to pay it back.
Anyway, nothing I can do about it for this year to be honest. I'll just continue to let the tax man bend me over without the lube as usual
I think I'm definitely going to be increasing my pension contributions to limit how much I have to pay back if at all in the future. The bankers in charge play the system so don't see why the minions like me shouldn't either.
It p1sses me off that my partner is on minimum wage for a few days work in a food waste prevention & food bank (she loves the job as it is helping people) so probably earns around £20k a year depending on days worked whereas I've been just over the £50k limit since the start of last year so I will have to pay some back which I do think is a little unfair. Now if I earned £50k or less and my partner did, we wouldn't have to pay any back. Surely it should be the other way around, and the couple earning more per household should have to pay it back.
Anyway, nothing I can do about it for this year to be honest. I'll just continue to let the tax man bend me over without the lube as usual
I think I'm definitely going to be increasing my pension contributions to limit how much I have to pay back if at all in the future. The bankers in charge play the system so don't see why the minions like me shouldn't either.
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.
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.
Their processes needs some serious review!!
overthefence
DW Regular
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.
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.
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.
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