In this section:
  • You're affected by the High Income Child Benefit charge - what next?

You're affected by the High Income Child Benefit charge - what next?

If you are liable to the High Income Child Benefit charge, you need to decide whether to keep getting Child Benefit payments and declare them, or arrange to stop the payments instead.

On this page:

What to do if you're liable to the tax charge

You have two options:

  • keep getting Child Benefit payments
  • stop getting Child Benefit payments

Your income level may influence your choice because of the amount of tax you might have to pay. So follow the steps below.

Top

Step one

Work out your likely tax charge. You can use an online calculator to do this.

Before you use the calculator, it's worth knowing the following:

  • For income between £50,000 and £60,000, the tax charge will always be less than the amount of Child Benefit.
  • For income of more than £60,000, the tax charge will generally be the same as the amount of Child Benefit. But some income adjustments may apply, such as pension contributions, which could bring your income level down to below £60,000. This could reduce your tax charge.

Estimate your High Income Child Benefit charge on GOV.UK (Opens new window)

Your results

Your results are only an estimate and are based on the figures you enter. It's worth knowing that:

  • you can use the calculator at any time to check your likely tax charge to help you keep things on track, for example if your income level changes
  • the tax charge applied from 7 January 2013 so your results for the tax year 2012-13 may well be less than any tax charge for future tax years

The calculator doesn't store any of the information you enter: HMRC cannot access the data.

Top

Step two

Once you have an idea of your tax charge, talk to any partner you have to see whether it would be better to keep getting the Child Benefit payments or arrange to stop them.

If you don't have a partner then it is up to you whether to keep or stop getting Child Benefit payments.

Top

You want to keep getting Child Benefit payments

You will have to pay a tax charge if you decide to keep getting Child Benefit payments.

You will have to declare these payments by:

  • completing a tax return every year
  • registering for Self Assessment (unless you are already registered)

You'll normally be registered for Self Assessment if you complete a tax return.

Even if you decide to declare your Child Benefit, you can always change your mind and arrange to stop the payments later on.

Don't already complete a tax return?

You need to register for Self Assessment as soon as possible and no later than 5 October 2013 otherwise you may have to pay a penalty. You'll need to do this even if you have completed a tax return before - it's the easiest way to make sure that HMRC have all the information they need.

To register, you'll need to fill in the online form SA1 Registering for Self Assessment.

Registering for Self Assessment and getting a tax return

Find out more about Self Assessment

Declaring Child Benefit for the High Income charge - the basics

Already complete a tax return?

You need to include details of your Child Benefit on your 2012-13 return. You won't be able to complete the shorter paper return (SA200) if you are declaring Child Benefit.

Declaring Child Benefit for the High Income charge - the basics

Top

You want to stop the Child Benefit payments

Stopping Child Benefit payments means:

  • you will not have to pay the tax charge
  • you will not have to complete a tax return - unless you need to for other reasons
  • any entitlement to Child Benefit will still carry on - providing you or your partner still qualify for it

It is important to know that:

  • only the person entitled to Child Benefit can stop the payments - this could be your partner
  • you will still be liable for the tax charge if your partner is entitled to the Child Benefit and doesn't want to stop the payments
  • you will still be liable to the tax charge for any period you are entitled to receive Child Benefit, from 7 January 2013 up to the date the payments stop
  • the payments can't be stopped for one child but carry on for another - it applies to all Child Benefit payments
  • the payments can be restarted at any time

When to stop the payments

You can arrange to stop the payments at any time.

Apply online to stop your Child Benefit payments

Find out more about stopping Child Benefit payments

Claiming Child Benefit

As long as you, or your partner, are entitled to receive Child Benefit you should still fill in a Child Benefit claim form if you have not already done so. This is because entitlement to Child Benefit:

  • can help you or your partner qualify for National Insurance credits that can protect entitlement to State Pension
  • can help protect entitlement to other benefits such as Guardian's Allowance
  • ensures your child is automatically issued with a National Insurance number before their 16th birthday

Get a Child Benefit claim form

Top

Keeping your tax and Child Benefit up to date

If your circumstances change, for example your income level changes or your child leaves home, don't worry. Just remember to report any changes. This applies even if you decided to stop receiving Child Benefit payments.

Changes in your income or Child Benefit entitlement may affect the amount of your tax charge. You can check this at any time by using the online calculator.

Top

More useful links

High Income Child Benefit charge: changes in your income

High Income charge: changes in your Child Benefit entitlement

High Income Child Benefit charge when a partner moves in or leaves

How claiming Child Benefit can protect your State Pension

Child Benefit - do you qualify?

Top