High Income Child Benefit Tax Charge: what you may have to pay in 2022

What is the High Income Child Benefit Charge? You may have to pay this tax charge if you have a child or children for whom you get Child Benefit. However, you adjusted net income also needs to be superior to £50,000. Your Benefits will tell you everything you need to know about High Income Child Benefit Charge.

What is the High Income Child Benefit Tax Charge?

The High Income Child Benefit Charge is a tax charge you may have to pay. Indeed, this can be true for you if you earn over £50,000 in individual income. Then, one of the following must be true:

Either you or your partner receives Child Benefit;
The person receiving Child Benefit does so for a child living with you. Additionally, they financially contribute the same amount as you or more for the child.

The child for who you or someone else earns Child Benefit might not be your own. This does not affect your eligibility for the High Income Child Benefit Tax Charge.

You may estimate the amount of High Income Child Benefit Charge you have to pay. Indeed, you can do so with the Child Benefit tax calculator on the Gov.UK website.

How is the High Income Child Benefit Charge calculated?

In order to know if you have to pay the High Income Child Benefit Tax Charge, your ‘adjusted net income‘ needs to be calculated. Indeed, this is the total amount of taxable income you receive. More specifically, it needs to be the amount before things like Gift Aid and personal allowances.

Disclaimer

If you ‘adjusted net income‘ is above £50,000, you may have to pay the High Income Child Benefit Tax Charge.

You may have a partner. Additionally, you both may have an adjusted net income above £50,000. If this is the case, whoever has the highest income needs to pay the charge.

Who qualifies as a ‘partner’? This is anyone who you are in a civil partnership with or married to. Furthermore, you need to not be separated from them. Lastly, you may not be married to them or in a civil partnership. However, if you live together as if that is true, they are considered your partner.

Do I have to pay the High Income Child Benefit Charge?

You may have to pay the High Income Child Benefit Charge if your income exceeds £50,000. More specifically, you have to pay one percent of how much you get in Child Benefit for every £100 of income that you receive over £50,000 yearly.

However, you have two possibilities. In fact, you might not have to pay the tax charge. You can:

Chose to receive Child Benefit payments: then, you will have to pay the tax charge at the end of every following tax years;
Chose not to receive Child Benefit payments: then, you will not have to pay the High Income Child Benefit Charge.

You may choose not to receive Child Benefit. Then, you may still fill in the claim form. Indeed, simply indicate in it that you do not want to receive payments. Furthermore, fill in the form if you want to:

Make sure that your child will receive a National Insurance number automatically before they turn 16 years old: if this is not the case, they will need to apply for one themselves;
Receive National Insurance credits: these contribute towards your State Pension.

You may already be receiving Child Benefit. If this is the case, you can do either of the following:

Keep receiving Child Benefit: then, you will have to pay the High Income Child Benefit Charge at the end of the year;
not receive Child Benefit anymore: this is known as ‘opting out‘.

How to pay the High Income Child Benefit Tax Charge

You may have to pay the High Income Child Benefit Charge. If this is the case, you may do so online, on the Gov.UK website. You may do so in two steps:

Registering for a Self Assessment;
Filling out a Self Assessment tax return, and paying what you must.

Disclaimer

The second step must be done every tax year.

How can I register for Self Assessment? You may do so on the Gov.UK website. You may get a penalty if you fail to register for Self Assessment. Additionally, this is also true if you do not declare your Child Benefit on your Self Assessment tax return.

You may need to get information from your partner or ex-partner for this tax charge. However, you may not be able to do so. Then, write to HM Revenue and Customs (HMRC).

You can ask them two things. First, if your partner or ex partner receives Child Benefit. Second, you can ask if their adjusted net income is higher than yours.

The answer that HM Revenue and Customs will give back is either ‘yes‘ or ‘no‘. The information given will not be any more detailed. In order for you to ask this, you will need to give the following information:

Your National Insurance number, date of birth, address and name;
Your adjusted net income;
The name of your (ex) partner;
Your Unique Taxpayer Reference (UTR) (if you have one).

There is additional information you could include about your (ex) partner. More specifically, indicate the following if you are able to, their:

Date of birth;
National Insurance number;
Unique Taxpayer Reference;
Address.

What is Child Benefit?

You may be the parent or guardian of a child below 16 years old. If this is the case, you could receive monthly payments. Then, you will not have to pay taxes on the High Income Child Benefit Charge.

You may be able to claim Child Benefit for a child who is 16 or 17 years old. However, in order for this to be true, they must be one of the following:

Not able to support themselves: this must be because of an illness or disability;
Currently in full-time education or training.

You may not claim Child Benefit for a child who is 18 years or older. There are also income limitations with Child Benefit. There are also income limitations with Child Benefit.

They are as follows:

Income limitations for earning Child Benefits and qualifying for certain other benefits
Number of children or young persons	Income of a single claimant	Combined income of a claimant couple
1	≤ £18,500	≤ £25,500
2	≤ £23,000	≤ £30,000
3	≤ £27,500	≤ £34,500
4	≤ £32,000	≤ £39,000

How much can I get with Child Benefit?

There are two different rates of Child Benefit. Indeed, you could earn a base of £21.15 weekly for either your older or only child. Then, additional children may grant you £14 weekly per child.

Additionally, your Child Benefit may grant you National Insurance credit. Indeed, this could be the case if your child is under 12 years old. However, you also must either not be working or not have a high enough income to make National Insurance contributions.

Furthermore, your family may split up. If this is the case, you may receive £21.15 weekly for your older child.

How can I stop receiving Child Benefit?

You may stop receiving Child Benefit. Indeed, this would be to not have to pay the High Income Child Benefit Charge. You may do so in one of two ways:

By filling out a form on the Gov.UK website: you will have to access it using your Government Gateway login information;
By contacting the Child Benefit Office: you may do this either by post or phone (0300 200 3100).

You may not have a Government Gateway login. If this is the case, you will be able to create one. Indeed, this will be when you fill out the form.

Disclaimer

You may be using Child Benefit in order to reimburse an overpayment. If this is the case, you cannot stop receiving it. You have certain responsibilities after your Child Benefit ends. More specifically, you must still pay the High Income Child Benefit Charge for every tax year that you received Child Benefit.

Furthermore, you need to report any changes in circumstances that might affect your eligibility for Child Benefit. Indeed, this is regardless whether or not you receive Child Benefit.

How can I restart my Child Benefit?

You may have stopped your Child Benefit and want to restart it. Indeed, you may do so if both the following apply, you:

Stop receiving the benefit to not pay the High Income Child Benefit Charge;
Are still eligible to receive the benefit.

You may restart your claim in one of two ways:

By filling out a form on the Gov.UK website: you will have to access it using your Government Gateway login information;
By contacting the Child Benefit Office: you may do this either by post or phone.

You may not have a Government Gateway login. If this is the case, you will be able to create on. Indeed, this will be when you fill out the form.

Typically, your payments will begin again the Monday after you make your claim (and it is received). Your payments may be backdated. If this is the case, the Child Benefit Office will write you and tell you this.

Important

You will have to pay the High Income Child Benefit Charge once your Child Benefit payments start again. Indeed, this is the case if your adjusted net income is more than £50,000.

You may use the Child Benefit tax calculator on the Gov.UK website in order to see how much you may have to pay. Additionally, you need to report any changes in circumstances that might impact your Child Benefit.