Child Benefit Print

Child Benefit is payable for children up to the age of 16. For 2021/22 the rates have been increased to £21.15 (2020/21 £21.05) for the first child, and £14.00 (2020/21

£13.95) for the second and each subsequent child.

A tax charge is applied to claw-back Child Benefit for families whose adjusted net income exceeds £50,000. Adjusted net income is the individual’s taxable income before personal reliefs but after deducting gross Gift Aid donations and any pension contributions paid net of basic rate tax. Where both partners have adjusted net income in excess of £50,000 the charge only applies to the partner with the higher income.

The charge is 1% of the Child Benefit for every £100 the chargeable person’s net income is in excess of £50,000, up to a maximum charge where the adjusted net income is £60,000, at which point the whole of the child benefit allowance is clawed-back.

Example:

John and his partner Ruth have one child for whom Ruth receives Child Benefit of

£21.15 per week during 2021/22. John’s adjusted net income for 2021/22 is £57,000, and Ruth’s adjusted net income is £35,000. The charge is applied against John’s income and is calculated as follows:

Child Benefit £21.15 per week = £1,100. 1% thereof = £11.00

Multiple factor = (57,000 – 50,000)/100 = 70

Charge £11.00 x 70 = £770.00

If John’s adjusted net income exceeds £60,000 then the charge would be equal to the full Child Benefit of £1,100, in which case John and Ruth may decide not to claim the Child Benefit.

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