Higher Earners and Child Benefit
If your income is over £50,000 and you or your partner are in receipt of child benefit then you will need to pay some of it back to the Government. If your income is over £60,000 you will have to pay it all back.
The clawback is charged to the highest earner. Very broadly the measure of income used for this purpose is your total taxable income before personal allowances are offset.
You have the choice of opting out of child benefit at any time, which is easy to do via HMRC website, or alternatively you can repay the overpaid benefit at the end of the tax year.
It is worth remembering that if you pay your tax under self-assessment, any high income child benefit charge is included when calculating the amount of tax that you are required to pay on account for the following year.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.