Child Benefit: What You Need To Know.

Child benefit can be clawed back where the recipient has an annual income that exceeds £50,000.

 

The claw back is at 1% of the benefit for every £100 of taxable income over £50,000, so that when the income reaches £60,000 all the benefit is lost.

 

The benefit is deemed to be received by the spouse with the highest income so both partners need to keep their annual taxable income below £50,000 to avoid a claw back.

 

Where able, apportioning salary between spouses, changing salary for tax free benefits or making pension contributions can reduce taxable income to keep it below the £50,000 threshold.

 

Please contact us on 0113 233 8600 if you would like further details.

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