If you have a personal income of over £50,000 you may have to pay the High Income Child Benefit Charge.
The tax charge will affect an individual if they, or their partner, receives child benefit or someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep.*
“If you think you will be affected by this tax charge, you can choose to no longer receive Child Benefit payments,” said Peter Way-Rider, tax manager at Ellis & Co Chartered Accountants and Business Advisers.
“However, you must still fill in the Child Benefit claim form, which will help with you National Insurance credits.
“Also, filling in this form means your child will receive their National Insurance number automatically when they turn 16, rather than having to apply for one.”
For further information about this or any other tax matter, contact Peter on 01244 343504.
NB: It does not matter if the child living with you is not your own.