Earning over £50K can't claim Child Benefit? 2 February at 11:54PM in Benefits & tax credits 2 replies 365 views

Theresonly1

Need some clarification...

According to this government page: https://www.gov.uk/child-benefit/what-youll-get

If earning over £50K need to pay High Income Child Benefit Charge. Does that mean If I (or my partner) earn over £50K I can't claim Child Benefit?
And If I can still claim then I will need to pay the High Income Child Benefit Charge? - How much is this charge usually? It is not greater than the child benefit monthly payment is it?
And also, what If I don't claim Child Benefit - do I still need to pay this charge or is this charge only applicable for when you apply the benefit?

Then overall, is it recommended to apply for Child Benefit if you earn over £50K? 
I know it mentions about other benefits such as National Insurance Credits - but is the offset worth it in the end?

Dazed_and_C0nfused

Does that mean If I (or my partner) earn over £50K I can't claim Child Benefit?

No, there is no financial limit which prevents you claiming Child Benefit.

And If I can still claim then I will need to pay the High Income Child Benefit Charge? - How much is this charge usually? It is not greater than the child benefit monthly payment is it?

The High Income Child Benefit Charge isn't based purely on your (taxable) income.  It's adjusted net income which counts so you could have taxable income of say £80,000 but if you pay enough into your pension (or make Gift Aid payments) you could still avoid paying any HICBC.

And also, what If I don't claim Child Benefit - do I still need to pay this charge or is this charge only applicable for when you apply the benefit?

Why would there be any HICBC to pay if you (or someone else in your household) haven't even claimed Child Benefit 🤔

calcotti

Theresonly1 said:

Then overall, is it recommended to apply for Child Benefit if you earn over £50K? 
I know it mentions about other benefits such as National Insurance Credits - but is the offset worth it in the end?

1, It’s important to note too that you can claim Child Benefit but opt not to be paid.

https://www.gov.uk/child-benefit-tax-charge/stop-child-benefit

This is very important for a couple with one very high earner and one who is not working enough to get NI contributions from work and is not claiming any other benefits giving NI credits. The second half can Child Benefit and ask not to be paid. Because nothing is paid the HICB will not apply but Class 3 NI credits are still given to the CB claimant (if the child is under 12). Obviously if NI record is already being filled from work or other benefits there is no need to worry about obtaining NI credits from CB.

2. If CB is paid the HICB only cancels out the CB if the adjusted net income reaches £60,000. It will not cost more than the CB itself.