HM Revenue and customs are encouraging parents who claim child benefit to check their P60 which must be issued by 31st May 2022 to those employed on 5th April 2022.
If either of the parents income has recently risen above £50k, they may be affected by the High Income Child Benefit Charge. Check your P60 and visit GOV.UK to learn more https://www.gov.uk/child-benefit-tax-charge
What counts as income
To work out if income is over the threshold, parents need to work out their ‘adjusted net income’ which is your the taxable income before any personal allowances and less things like Gift Aid.
If income is over the £50,000 threshold
Parents can choose to either:
- get Child Benefit payments, and pay any tax charge at the end of the tax year
- not get Child Benefit payments, and not pay the tax charge
If you choose to not get Child Benefit
It may still worth filling the Child Benefit claim form, but state on the form that they do not want to get payments.
They need to fill in the claim form if they want to:
- get National Insurance credits, which count towards State Pension
- ensure their child gets their National Insurance number automatically before they’re 16 – otherwise they would need to apply for one!