High Income Child Benefit Charge – what happens when you previously elected not to claim but your circumstances have changed?

Published by Louise Ford on

The 20/21 tax year has been a difficult year financially for many due to the pandemic and you may have had unexpected changes to your household income.   If you haven’t been claiming Child Benefit payments, it’s worth checking whether you would have been entitled to Child Benefit payments for 20/21.

If your ‘adjusted net income’* and that of your partner’s is less than £60,000 then you are eligible to receive Child Benefit.  When your benefit begins depends on whether you have previously claimed or not.

If you have previously claimed Child Benefit but made an election not to receive payments because you or your partner had income in excess of £60,000 it is possible to subsequently withdraw that election.  This is called a revocation. In order to reinstate payments you can contact the Child Benefit helpline on 03002003100 or complete the online form.

You may also reinstate benefits for an earlier year provided that notice is given within two years of the end of the relevant tax year and no benefits were received in that year. If you have never previously claimed Child Benefit then you can complete a form CH2 but you are only able to backdate a new claim for 3 months.

*‘Adjusted net income’ is total taxable income minus certain tax reliefs (for example trading losses for self-employed, Gift Aid charity donations and pension contributions).

Photo by Sandy Millar on Unsplash

Categories: Tax