A guide to high-income child benefits

Chancellor George Osborne launched High Income Child Benefit Charge (HICBC) in 2013. It affects those with an income over £50,000 who receive Child Benefits or live with someone who does. 

Even if the child is not biologically yours, HICBC rules can still apply, requiring the declaration of Child Benefits received via a tax return.

Following are facts given by local tax accountants about HICBC.

1. To determine if your income exceeds the £50,000 threshold for the HICBC, you need to calculate your "adjusted net income," which is your total income before tax allowances.
2. Adjusted net income includes income from employment, self-employment, perks, savings, dividends, property rentals, etc., not just salary.
3. If both partners adjusted net income is over £50,000, the higher earner is responsible for the HICBC.
4. Partner refers to spouse, civil partner, or someone you live with, not separated or divorced individuals.

The tax accountant recommends paying the high income child benefit charge

1. To avoid paying the (HICBC), you can opt out of Child Benefit payments. You can do this online, by phone, or by post using a Government Gateway user ID and password.
2. If you opt out of receiving Child Benefit payments, you should still complete the claim form to receive National Insurance credits toward your State Pension. The child should also receive a National Insurance number. You can report any changes in your circumstances that affect your Child's Benefit entitlement.