{"id":827,"date":"2021-05-06T00:00:00","date_gmt":"2021-05-05T23:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2021\/05\/06\/are-your-child-benefits-under-threat\/"},"modified":"2021-05-06T00:00:00","modified_gmt":"2021-05-05T23:00:00","slug":"are-your-child-benefits-under-threat","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2021\/05\/06\/are-your-child-benefits-under-threat\/","title":{"rendered":"Are your Child Benefits under threat?"},"content":{"rendered":"<p>For some time now, HMRC have had the power to claw back some or all of the Child Benefits you receive if either parent&rsquo;s income exceeds &pound;50,000.<\/p>\n<p>The benefit is recovered by the High Income Child Benefit Charge (HICBC). This states that if either parent had income over &pound;50,000 and:<\/p>\n<ul>\n<li>either partner received Child Benefit, or<\/li>\n<li>someone else received Child Benefit for a child living with you and they contribute at least an equal amount towards the child&rsquo;s upkeep.<\/li>\n<\/ul>\n<p>Then part or all of the Child Benefit received may need to be paid back to HMRC. It doesn&rsquo;t matter if the child living with you is not your own child.<\/p>\n<p>You may not have considered the HICBC before if your incomes were below the &pound;50,000 cap, but if your income for 2020-21 exceeded this amount you should be aware of the following.<\/p>\n<ul>\n<li>The parent with the higher income for 2020-21 (more than &pound;50,000) will need to register to submit a self-assessment tax return and pay any HICBC due &ndash; 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.<\/li>\n<li>The parent with the higher income, even if they were not the person claiming the Child Benefit, will need to make this declaration.<\/li>\n<\/ul>\n<p><strong>How will benefits be paid back?<\/strong><\/p>\n<p>1% of the Child Benefit received will be recovered by HMRC&rsquo;s HICBC for every &pound;100 the highest earner&rsquo;s income exceeds &pound;50,000. Accordingly, once the highest income exceeds &pound;60,000 all the Child Benefits received will be reclaimed.<\/p>\n<p>To avoid the charge, it is possible to decline receipt of Child Benefits. Care should be taken in triggering this option as it can have roll-on disadvantages when claiming future State Benefits or obtaining a National Insurance number for children.<\/p>\n<p>To summarise:<\/p>\n<ul>\n<li>Parents where the highest income is below &pound;50,000 will not be affected and can continue to claim Child Benefit with no tax claw back.<\/li>\n<li>Parents where the highest income is above &pound;50,000 but below &pound;60,000 will be affected and will need to pay the appropriate HICBC.<\/li>\n<\/ul>\n<p>There are strategies that you could use to reduce your taxable income below the &pound;50,000 or &pound;60,000 thresholds as these are calculated net of any allowable deductions.<\/p>\n<p>Please call if you would like more advice regarding these deductions or dealing with your registration for self-assessment, if required.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>For some time now, HMRC have had the power to claw back some or all of the Child Benefits you receive if either parent&rsquo;s income exceeds &pound;50,000. The benefit is recovered by the High Income Child Benefit Charge (HICBC). This states that if either parent had income over &pound;50,000 and: either partner received Child Benefit, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-827","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=827"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/827\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=827"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}