IMPACT ON THE HIGH-INCOME CHILD BENEFIT CHARGEMay 05 2020
With many employees and the self-employed being furloughed, being made redundant, or making lower profits, their income for 2020/21 may 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 6th April to £21.05 a week for the eldest child and £13.95 for each additional child.
Many couples with an income over £60,000 stop claiming their child benefit rather than having to repay it back in tax. They should therefore reinstate their claims if the income of the higher paid taxpayer could drop below £60,000.