TaxClever
By using this Website you agree to our use of web cookies as defined by our Privacy Policy
TaxClever © All Rights Reserved 2013-2020
Did You
Know?
Practice No.
13444
Child Benefit - High Income Calculations
How is the charge calculated?
The amount you will be charged will depend on the amount of Child Benefit you are receiving and the level of your adjusted net income.
The charge will vary depending on whether your adjusted income falls between £50,000 and £60,000 or is over £60,000.
Charges where your Adjusted Net Income falls between £50,000 and £60,000
A charge of 1% of the sum you receive as Child Benefit will be payable for every £100 of adjusted income between £50,000 and £60,000. The charge will always be less than the total amount of the Child Benefit payment.
Example:
Calculation of Higher Income Child Benefit Charge
- Adjusted net income £52,645
- Sum of £438 child benefit being received for the tax year
The charge will be calculated as follows:
- Income over £50,000 is (£52,646 - £50,000) = £2645
- Percentage charge rate applied will be £2645/100 = 26.45%
- Charge = £438 x 26.45% = £115.85
Adjusted net income over £60,000?
Where the adjusted net income is above £60,000 the charge will be equal to the full amount of Child Benefit you, or your partner, are entitled to receive effectively wiping out the benefit.