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COVID-19 IMPACT ON THE HIGH-INCOME CHILD BENEFIT CHARGE
Lower levels of income might change the position of some families normally liable for the high-income child benefit charge...
With many employees and the self-employed being furloughed, being made redundant or making lower profits their income for 2020/21 may well fall below the £50,000 limit at which child benefit starts being taxed.
The charge is 1% for every £100 that adjusted net income exceeds £50,000 multiplied by the child benefit claimed in respect of the children. Note that the rate of Child benefit increased from 6 April to £21.05 a week for the eldest child and £13.95 for each additional child.
Many couples with income over £60,000, when the benefit is fully taxed, stopped claiming Child Benefit rather than have to repay it back in tax. They should therefore reinstate their claims if the income of the higher paid taxpayer drops back below £60,000.
Related Articles to High-Income Child Benefit Charge
High Income Child Benefit Tax Charge | Gov.uk
Extract:
"Overview
You may have to pay a tax charge, known as the ‘High Income Child Benefit Charge’, if you have an individual income over £50,000 and either:
- you or your partner get Child Benefit
- someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep
It does not matter if the child living with you is not your own child."