Ensure You Claim Child Benefit

In 2013, the Government introduced the High Income Child Benefit Charge (HICBC) to claw back child benefit from higher-earning couples they felt were in less need of this non-taxable, non-means-tested state benefit ...

Any income over £50,000 per year is classed as 'high income' for this purpose, so anyone with adjusted earnings of £60,000 or above has the entire amount of child benefit clawed back.

"This charge has always been controversial!"

HICBC depends on a good degree of information sharing between individuals in a relationship that isn't always automatic. This means that the person receiving the child benefit sometimes suffers the clawback.

The £50,000 to £60,000 thresholds haven't been increased since 2013, so it's become a bit of a stealth tax as more taxpayers cross the thresholds as wages rise over time.

However, it is simple to elect not to receive child benefit which means there's no need to report the HICBC on tax returns. Though there is an important distinction between electing not to receive it and not claiming it in the first place.

Claiming child benefit is important for non-working or low earning parents and guardians as it secures National Insurance credits for a child under 12 years old and they count towards the State Pension. So, not claiming child benefit because of the admin involved with HICBC can have longer-term consequences.

"Tick the right box on the claim form to opt-out of receiving the money!"

I've had a number of questions asked recently about the difference between opting out and not claiming and have advised a number of new parents who are also business owners where one is a higher earner.

With such a complex system, the right advice about your child benefit claim is essential.


If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.