HMRC ‘check if you need to pay’ alert if you earn over this amount | Personal Finance | Finance
HMRC has urged people to do a quick check to see if they need to pay a charge. The amount you must repay depends on your income level.
The group published a message to taxpayers in the early hours of April 12: “Earning over £60k? Check if you need to pay the High Income Child Benefit Charge.”
This fee is when you must repay part of your Child Benefit claim. With DWP help you can get £27.05 a week for your eldest or only child, plus an extra £17.90 a week for each child you have.
This means if you have two children you’ll 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 have two children you’ll get £179.80 per four-week pay period.
However, once you or your partner earn over £60,000 you must repay this benefit. You pay back one per cent of your entitlements for every £200 you earn above the threshold; so you must repay the full amount once your individual income reaches £80,000.
How do you pay the fee?
Asked how the amount would be repaid, the message from HMRC said: “If you are not self-assessed, use the new digital service to pay your wages. This is quick and easy via the HMRC app or online.”
The tax department added a link here: more information About paying the fee on the government website. Here you can arrange to repay the amount through your PAYE earnings or self-assessment.
If you need to submit a tax return for another reason, such as because you are self-employed, you will need to repay the amount through self-assessment.
You can disable
Another option is to choose not to buy Payments you can make Open gov.uk website. If you stop receiving payments, you will continue to be registered with Child Benefit.
It is important to keep this in place as it makes you eligible for National Insurance credits that count towards your state pension. Another advantage is that you will be given a National Insurance number for your child so they do not have to apply just before they turn 16.
You can receive Child Benefit up to the age of 16 and up to the age of 20 for a child in education or training.
