Higher Income Child Benefit Charge 27 June 2022 at 12:16PM in Cutting tax 19 replies 1.1K views

HannahW1982

Hi, does anyone know if there is an official way to complain about the Higher Income Child Benefit Charge for Child Benefit? It seems crazy how this is calculated on one persons income as opposed to household income.  My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. I feel there should be a petition or something going to get this changed! Can anyone help to get this setup?

MattMattMattUK

HannahW1982 said:

Hi, does anyone know if there is an official way to complain about the Higher Income Child Benefit Charge for Child Benefit? It seems crazy how this is calculated on one persons income as opposed to household income.  My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. I feel there should be a petition or something going to get this changed! Can anyone help to get this setup?

You can complain to your MP, they will send you some pointless platitudes back. You can sign one of the petitions on gov.uk, nothing will happen. It is a like it or lump it position unfortunately. 

Flugelhorn

has been like this for years - yes very unfair and there has been much complaining about it but nothing done. DH used to claim it, we stuck it in and offset account and then I paid it all  back as part of my self assessment nearly at the end of the next financial year - so the money was doing some good while we had it 

[Deleted User]

HannahW1982 said:

 My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. 

Tell him to consider increasing his pension contributions.

Dazed_and_C0nfused

HannahW1982 said:

Hi, does anyone know if there is an official way to complain about the Higher Income Child Benefit Charge for Child Benefit? It seems crazy how this is calculated on one persons income as opposed to household income.  My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. I feel there should be a petition or something going to get this changed! Can anyone help to get this setup?

If his adjusted net income is "just over" £50k then be will only need to pay a small part of the Child Benefit back.

But to answer your question your MP is the best bet but don't expect anything to change, it must be a bit of a money spinner for the treasury.

mondeotd

HannahW1982 said:

Hi, does anyone know if there is an official way to complain about the Higher Income Child Benefit Charge for Child Benefit? It seems crazy how this is calculated on one persons income as opposed to household income.  My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. I feel there should be a petition or something going to get this changed! Can anyone help to get this setup?

Welcome to the club.

The 50k HICBC limit was set in 2013 and its been frozen ever since. Its effectively a 60% tax rate.

Not_Martin

Just joined to add a visualisation of this as it's been grinding my gears for years.
I'm sure nothing will come of it, but wouldn't it be great if Martin and the team started a campaign to get this changed (corrected?) by the government? Particularly now when times are really tough, I'm sure there are thousands upon thousands (millions?) of families in Scenario 1 that could really use the Child Benefit to help offset some of the financial impacts everyone is suffering. A simple change from being based on individual income to household income wouldn't impact anyone in scenarios 2-5, but would be a tremendous help to those in scenario 1. Why would it not be done (other than it'll obviously cost the government a few quid)?
Martin? MSE Team? Any thoughts?

400ixl

And the likely result would be that the household would be taxed at the £50k limit, not that the single income households wouldn't, so you would impact more people not less.

sheramber

The  higher Income Child Benefit Charge was a compromise to those who wanted child benefit abolished.

Be careful what you wish for.

pjread

mondeotd said:

HannahW1982 said:

Hi, does anyone know if there is an official way to complain about the Higher Income Child Benefit Charge for Child Benefit? It seems crazy how this is calculated on one persons income as opposed to household income.  My husband earned just over 50k last year, I wasn't working, and hes been told he has to pay the higher income charge. Yet a household with two earners each under the 50k doesn't have to pay it. It seems so unfair. I feel there should be a petition or something going to get this changed! Can anyone help to get this setup?

Welcome to the club.

The 50k HICBC limit was set in 2013 and its been frozen ever since. Its effectively a 60% tax rate.

Yeah not flat though, depends on number of children.  ~62% assuming 2 kids with the recent NI rise, 70% with 3, 85%+ with 5+.... 

becky298

I know how much this frustrates people, and the way it’s calculated is no longer relevant for most families now the living wage is increasing and we are being penalised.   

I have opened another petition but it won’t let me share the link

’Change the way child benefit high income tax is calculated to total income’