HMRC has urged people to do a quick check to see if they may need to pay a charge. The amount you need to pay back depends on your income level.
The group posted a message to taxpayers on X earlier today, April 12, which states: “Earning over £60k? Check if you need to pay the High Income Child Benefit Charge.”
This charge is when you have to pay back part of your Child Benefit claim. Through the DWP benefit, you can get £27.05 a week for your eldest or only child, plus an extra £17.90 a week for each other child you have.
This means if you have two children, you would get £44.95 a week, or £2,377.40 a year. The benefit is paid every four weeks on a Monday or Tuesday, so if you had two children, you would get £179.80 each four-week pay period.
However, once either you or your partner earns above £60,000, you have to repay the benefit. You pay back one percent of your entitlement for each £200 you earn above the threshold, so once your individual income reaches £80,000, you have to repay the whole amount.
How do you pay the charge?
On the question of how to pay back the amount, the message from HMRC said: “Use the new digital service to pay through your salary if you’re not in self assessment. It’s quick and easy with the HMRC app or online.”
The tax department included a link to more information about paying the charge on the Government website. Here you can arrange to pay back the amount through your PAYE earnings or through self assessment.
You will need to pay back the amount through self assessment if you need to send a tax return for another reason, such as if you are self employed.
You can opt out
Another option is to simply opt out of receiving payments, which you can do on the gov.uk website. If you opt out of receiving payments, you will still be registered for Child Benefit.
This is worth keeping in place as it ensures you are eligible for National Insurance credits, which count towards your state pension. Another perk is that you will be given a National Insurance number for your child, so they won’t have to apply for one just before they reach 16.
You can get Child Benefit for a child until they reach the age of 16 or up to the age of 20, if they are in education or training.