Child Benefit: Date to note if you are affected by High Income Child Benefit Tax Charge | Personal Finance

Child Benefit can be claimed if a person is responsible for bringing up a child who is under the age of 16, or under the age of 20 if they stay in approved education or training. However, only one person can get Child Benefit for a child.

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Child Benefit rates: what you should know

The payment is made every four weeks and there’s no limit as to how many children can be claimed for – although the rates do vary depending on who the allowance is for.

As well as receiving the money, by claiming Child Benefit, the individual can get National Insurance credits, and these count towards the state pension.

If the recipient or their partner have an individual income of more than £50,000, they may be taxed on Child Benefit.

This is known as the High Income Child Benefit Tax Charge.

READ MORE: Child Benefit: Why moving in with new partner could lead to tax charge

Child Benefit: Family and 2020 in pictures

Child Benefit: Some families will need to be aware of an important date in 2020 (Image: GETTY)

Child Benefit: Family in picture

Child Benefit: Only one individual can get Child Benefit for a child (Image: GETTY)

It’s possible to use a Child Benefit tax calculator, which is hosted on the government website, in order to estimate how much tax a person would need to pay.

People affected by this charge need to fill in a Self Assessment tax return each tax year and pay what they owe.

Once a person earns £60,000, the individual loses all of the benefit through tax.

The Self Assessment Tax Return deadline for the 2018 to 2019 tax year fell on January 31.

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In the run-up to the deadline, asked Chartered Financial Planner and Director of Public Policy at LEBC Group whether there was anything else people need to be aware of with regards to the deadline, specifically in relation to Child Benefit.

Ms Ingram explained: “If this is the first time you have been liable for Child Benefit tax and do not ordinarily file a self-assessment return, you should register with HMRC by October 5 in the tax year following the start of the liability.

“So new parents and those whose income exceeds £50,099 for the first time should register by October, 5 2020 for the current tax year.

“This may mean that your tax liability can be collected via your tax code which is easier for those with steady income, which does not change year on year.

Child Benefit: Family in picture

Child Benefit payments may be affected by the High Income Child Benefit Tax Charge (Image: GETTY)


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“Those affected may consider reducing taxable adjusted income in future years, so that more of the Child Benefit can be paid tax free.”

While asking an employer for a pay cut may not be something people are likely to be interested in doing, Ms Ingram explained that there are alternative ways to reduce taxable adjusted income without being paid less.

“As well as making charitable gifts and pension savings, the higher income adult could consider changing ownership of some income producing assets to the lower income adult,” she said.

“This would also save income tax as well. The deadline for this in the current tax year is April 5, 2020.”


Child Benefit: Family in picture

Child Benefit can mean a person can get National Insurance credits for their state pension (Image: GETTY)

Child Benefit rates are set to rise in April, following the end of the government’s freeze to working-age benefits.

The increase will be 1.7 percent, in line with inflation.

Child Benefit rates are currently £20.70 per week if the allowance is for the eldest or an old child.

For any additional children, the weekly rate stands at £13.70 per child.