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COVID-19 Advice for individuals - High income child benefit

Article

COVID-19 Advice for individuals - High income child benefit

15 Jun 2020

1 minute read

Reductions in income due to the COVID-19 pandemic may lead to changes in the high income child benefit charge (HICBC).

COVID-19 Advice for individuals - High income child benefit - news article image

Reductions in income due to the COVID-19 pandemic may lead to changes in the high income child benefit charge (HICBC).

The HICBC applies when a child benefit claimant or their partner have over £50,000 in adjusted net income in a tax year.

The HICBC is an additional tax which is paid by the partner with the higher adjusted net income. The amount of the extra tax is equal to 1% of the child benefit received by them (or their partner) for each £100 above £50,000 threshold. Once the adjusted net income of the higher partner reaches £60,000, 100% of the child benefit is effectively clawed back via the charge.

For those who have had a drop in income due to the coronavirus pandemic and who do not currently claim child benefit, they may wish to consider claiming or re-starting payments if you have previously opted out. Guidance on how to do this is available via guidance on GOV.UK (note - you can backdate a claim for up to three months).

Author:

Lorna Straker

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Author:

Lorna Straker

Need expert advice?

Speak to an expert for advice on
+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you

Email
info@shawgibbs.com

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