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Child Benefit Calculator
Child benefit exists to help parents with the cost of raising children and this calculator can help you work out how much you are entitled to. The parent that claims child benefit is entitled to state pension credits, which is helpful if they are not working or contributing enough national insurance to qualify for a full credit by earnings alone. The child benefit calculator below will help you know what your family is entitled to.
Child benefit has been around in some form for many decades, though has been universal and paid for each child since the late 1970s. However, a big change started in 2013; families where the highest earner had an adjusted net income of over £50,000 per year would be entitled to increasingly less child benefit until £60,000 where the family would receive none. What can be surprising for families is that this currently happens by paying it back via self assessment in one lump sum, called the high income benefit charge. Though there is talk from the government that this will happen via PAYE tax codes in future, currently there is no date for this.
In April 2024, the thresholds increased to £60,000 and £80,000 per year. If you, or your partner, has an adjusted net income of more than £60,000 and you are currently claiming child benefit, use this calculator to estimate the value of the high income child benefit charge you will be liable for. You will need to complete a self assessment in order to pay this. You may want to consider additional pension contributions while you're liable for the charge; use our calculator to help you work out the benefits of this.
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It doesn't matter who receives the child benefit
Whether the higher earner or the lower earner in the household receives the child benefit, it doesn't matter. The high income child benefit charge is levied against the higher earner despite the fact they didn't claim the child benefit. It is also important to know that it doesn't matter if the person is the children's biological parent or not; if your partner moves in with you, and earns over the threshold, a partial or full repayment of the child benefit will eventually be due. Citizens Advice has a thorough article that will help you report any changes in circumstances to help you get ahead of the charges.
You may want to put the extra payment aside
If you are liable for a partial high income child benefit charge, you may want to consider putting the amount you owe back each month aside so that the final bill doesn't sting so much. An easy access saver or separate current account could be a good option, but think about what suits your particular financial approach.
The old thresholds
Many people didn't realise that they had gone over the threshold in previous years; from 2013 until April 2024, any income between £50,000 and £60,000 would be liable for a partial charge, with £60,000 plus attracting repayment of the full child benefit received. The recent media about the change in thresholds has alerted many to the fact that they should have been paying the higher benefit charge. If you are in this camp, it is important that you tell HMRC as soon as possible. Do not wait for them to write to you. We are working on a simple calculator that may help you to estimate how much your bill could be, but for now HMRC has one that allows you to calculate for each tax year.
Child Benefit Calculator
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