HighIncome Child Benefit Charge The highincome child benefit charge (HICBC) applies to unmarried couples living together as well as spouses or civil partners when child benefit is claimed and one or both partner’s adjusted net income exceeds £50,000. Where both partners have income in excess of £50,000 the charge is applied to the higher earner. Note, if both partners earn £49,000, they escape the charge! The charge claws back 1% of child benefit for every £100 where the adjusted net income exceeds £50,000. When adjusted net income is £60,000 or more, the charge is 100% of the child benefit received in the tax year. For example: Cassandra claims child benefit for her two children totalling £1,788.80 for 2019/20. Cassandra earns £25,000 from her employment and her husband Rodney earns £55,000 from his employment. As Rodney’s adjusted net income is more than £50,000, the HICBC applies. It is equal to 50% ((£55,000 £50,000)/100 x 1%) of the child benefit received by Cassandra in the year, i.e. £894.40. If you are liable for the HICBC it must be declared on your selfassessment tax return so please ensure you inform your accountant if you claim child benefit. Caroline Dinsmore
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