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Child Benefit Self Assessment Accounts Preparation
Child Benefit for people earning £50,000+
If either you or your partner has an income of more than £50,000 a year then you will have to pay back some (or all) of your Child Benefit in the form of extra Income Tax.
You and your partner each earn less than £50,000 per year
If you and your partner each earn less than £50,000 a year, you will receive the full amount of Child Benefit without having to pay any of it back.
Either you or your partner earns between £50,000 and £60,000 per year
If either you or your partner earns between £50,000 and £60,000 a year, you will have to pay a portion of your Child Benefit back in extra Income Tax.
How does it work?
You will still get paid the full amount of Child Benefit each month (or each week, if you’re paid weekly). However, whichever one of you has the higher income, will have to pay more Income Tax to repay the portion of Child Benefit you’re no longer entitled to.
You will need to fill in a Self Assessment tax return so that HMRC can calculate the amount of extra Income Tax you will have to pay. If you would like any advice in relation to this or any other aspect of child benefit self-assessment accounts preparation, please get in touch.
If you have any questions, or for more information call us on 01622 745629. You can also sign up for our free newsletter.
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