ChildBenefitcharge

Child Benefit is paid to families with children, but where one partner in the household has income above a set threshold, some or all of the benefit can be clawed back through a tax charge, known as the High Income Child Benefit Charge. This applies to the higher earner personally, regardless of whose name the benefit is claimed in.

The charge can catch people by surprise, particularly where income fluctuates, bonuses are received, or a partner is unaware Child Benefit is being claimed at all. It can usually be managed through self assessment, and there are sometimes ways to reduce the impact through pension contributions or other planning. We can review your position and help you decide whether to keep claiming.