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Child benefit when earning over 50k
creditmanessex
Posts: 64 Forumite
How do you work out what you would need to repay?
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Comments
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Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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It's 1% of your yearly Child Benefit for every £100 over the 50k figure.
So ie. if you have 3 children, for every £100 you earn above it £29 gets clawed back; if you have 2 children it's £20.75 pounds, for 1 child it's £12.50. This is on top of £40 in income tax, as you are a higher-rate taxpayer*
Keep in mind that the 50k is your Annual Net Income, and it doesn't include pension contributions etc (though does include savings interest). So if you can afford it it's a good idea to think about increasing your pension contributions to stay below 50k as it's very tax efficient.
* I know CB and HR thresholds are v slightly different (£50099 v £50271) but close enough so I'm simplifying.0
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