Tax year end planning: Child benefit


Filed Under: Private Client

Planning tips for the tax year end.

A reminder that since 7 January 2013, payments of child benefit are clawed back by HMRC where one member of the household has adjusted net income of £50,000 or more for the tax year. The payments are clawed back at 1% for each £100 of income over £50,000 and completely withdrawn when income exceeds £60,000.

Individuals with income over £60,000 should consider stopping child benefit payments to avoid the complexity of filing a tax return but ensure that the claim for entitlement to child benefit is still made to protect certain National Insurance credits, such as state pension and bereavement benefits.