If you or your partner earns over £50,000 a year, you can still claim Child Benefit.
However, you’ll start to pay some of it back in extra Income Tax.
You’ll need to pay back 1% of your family’s Child Benefit for every £100 of your income over £50,000.
If either of you earns over £60,000 a year, you’ll have to repay all your Child Benefit in extra Income Tax.
Your salary could be over £50,000, but what HMRC pays attention to is your ‘adjusted net incomeOpens in a new window’. This is the pay you’re taxed on and doesn’t include things you pay for through salary sacrifice.
You can reduce your take home pay by increasing your workplace pension contributions. You can also do this by paying into a personal pension.
If you can afford to do this, it could limit how much Child Benefit you’ll need to pay back. You might want to talk to an accountant about this for more information.
Even if you have to repay it all, it can be worth continuing to claim Child Benefit as this will ensure you get National Insurance Credits which count towards your state pension.
This is particularly important if one of you isn't working or earns below the lower earnings limit for National Insurance Contributions.
For the 2023/24 tax year the lower earnings limit is:
- £123 a week
- £533 a month
- £6,396 a year.