How much you owe HMRC can vary
Taxpayers may want to check their details, as they may be liable for an HMRC charge. The amount people are required to repay depends on their earnings level.
The organisation shared a message with taxpayers on the social media platform X earlier today, April 12, which reads: “Earning over £60k? Check if you need to pay the High Income Child Benefit Charge.” This charge applies when you must return part or even the full amount of your Child Benefit claim.
Through the DWP benefit, you can receive £27.05 weekly for your eldest or only child, plus an additional £17.90 weekly for each other child. This means with two children you’d receive £44.95 weekly, or £2,377.40 annually. The benefit lands in your bank account every four weeks on a Monday or Tuesday, so with two children, you’d get £179.80 each four-week payment period.
However, once either you or your partner individually earns above £60,000, you must repay the benefit. You repay one per cent of your entitlement for every £200 you earn over the threshold, so once your individual income hits £80,000, you must pay back the entire amount.
How do you settle the charge?
Regarding how to repay the sum, HMRC’s message said: “Use the new digital service to pay through your salary if you’re not in self assessment. It’s quick and easy with the HMRC app or online.”
The tax authority provided a link to further details about settling the charge on the Government website. Here you can arrange to repay the sum through your PAYE salary or through self assessment.
You have to pay back the amount through self assessment if you need to submit a tax return for another reason, such as being self-employed. Alternatively, you can simply choose to opt out of receiving the payments, which can be arranged through the gov.uk website.
Extra perks
Should you decide to opt out, you will remain registered for Child Benefit. It is worth keeping this registration active, as it ensures you remain eligible for National Insurance credits that count towards your state pension.
Another benefit of being signed up to the scheme is that your child will automatically be issued a National Insurance number, meaning they won’t need to apply for one as they approach the age of 16.
Child Benefit can be claimed for a child until they turn 16, or up to the age of 20 if they remain in education or training.
