Restart child benefit?
The high income child benefit charge means that a family can have a choice:
Either choose to stop receiving child benefit (£21.05 a week for the first child and £13.95 for each other child); orPay back a percentage of child benefit paid, in income tax. Those earning £60,000 or more will have to repay the entirety in income tax if choosing this route.
If you have chosen the stop-payment option, you may wish to revise your choice in 2020/21. Your earnings may well fall in the current tax year – perhaps you have been furloughed on £2,500 a month – in which case your annual income may drop below the £50,000 threshold at which these complications occur. A claim for child benefit payments can only be backdated for a maximum of three months, so if you are in that situation, the sooner you ask the Child Benefit Office to restart payments, the better.
The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.