Calculating the charge The charge applies at a rate of one per cent of the full child benefit award for each £100 of income between £50,000 and £60,000.
The charge on taxpayers with income above £60,000 will be equal to the amount of child benefit paid.
Example Christine is a single parent and needs to move away for a new job.
Her daughter Sarah, age 12, goes to live with Christine’s friend.
If child benefit payments continue, either the recipient or their partner (depending on their circumstances) will need to declare the payments on their Self-Assessment (SA) return, and if they aren’t already in SA they need to register. The charge applies to taxpayers who have an adjusted net income over £50,000 in a tax year, where either themselves or their partner are in receipt of child benefit (see below where someone else claims child benefit).
If both partners have adjusted net income over £50,000, the partner with the higher income is liable for the charge (regardless of which partner is in receipt of child benefit).
Someone else claims Child Benefit Calculating the charge Electing not to receive Child Benefit National Insurance credits Paying the charge Action to take The legislation Meaning of ‘partner’ Adjusted net income Single earner/dual earner unfairness remains Other problems Forms More information Introduction This tax charge was introduced from 7 January 2013.
For a taxpayer whose income is £54,000, the charge will be £708.This also applies if another person claims child benefit for a child who normally lives in the high income household (see below).This change does not make Child Benefit a taxable benefit – the benefit itself remains non-taxable.The person can revoke their election and get the Child Benefit payments they were entitled to receive for 2016-2017.National insurance credits People still need to claim child benefit for each child even if they elect not to receive payments in order to preserve entitlement to national insurance credits that child benefit claimants receive if they have a child under 12 or are an approved foster or kinship carer.