This post is a reminder that a family claiming the weekly Child Benefit
(currently, £20.70 a week for eldest or only child and £13.70 a week for
additional children) may get an unwelcome tax bill if either parents’ income
exceeds £50,000 during a tax year.
If either parent had income over £50,000 for the tax year 2018-19, and:
- either partner received Child Benefit, or
- someone else received Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep.
Then part or all of the Child Benefit received may need to be paid back to HMRC. It doesn’t matter if the child living with you is not your own child.
You may not have considered the HICBC before if your incomes were below the £50,000 cap, but if your income for 2018-19 is likely to exceed this amount you should be aware of the following.
- Before 6 October 2019, the parent with the higher income for 2018-19 (more than £50,000) will need to register to submit a self-assessment tax return and pay any HICBC due – unless they are already registered in which case, they will need to enter the amount of Child Benefit received on their return and pay any tax due.
- The parent with the higher income, even if they were not the person claiming the Child Benefit, will need to make this declaration.
If we complete your tax return for you, be sure to tell us you are in receipt of Child Benefit.