End Higher Income Child Benefit Charge

Penalises single parents and single income families

Exacerbated by frozen £50,000 threshold

END Tax oF high income child benefit charge

• End High Income Child Benefit Charge.
  
  
• Unfair as couples can have £100,000 and not be affected, as long as neither of them has an income of over £50,000.
  
• If you have a single income between £50,000and £60,000 the income tax charge is
  1 per cent of your
  Child Benefit
  for every £100.
  
  
• The charity @Gingerbread says this tax is unfair.

Background

Martin Lewis @MartinSLewis

6:17 PM · Feb 8, 2024

"Even the Chancellor had to agree with me, when I put it to him, that the High Income Child Benefit Charge is an unfairness in the tax system."

"It penalises single parent and single income families unfairly. It was by far the biggest single topic the public wanted me to put to politicians." 

"The problem is exacerbated by the frozen £50,000 threshold which fiscally-drags more single parent families into this situation each year. It staggers me no party has latched onto the popularity they’ll get from pledging to ends this structurally unfair anomaly.”

EXAMPLES OF HOW PEOPLE LOSE - from Twitter

• My company car benefit in kind (BIK) put me over the threshold, I wasn’t even earning that amount but still had to pay back thousands! My wife earned nothing so I was the only income, the rules are always weighted against families

• There’s been no increase in the threshold since introduction in 2013!

• was on £52k and i had friends where both parents earned £45 a year. So way more combined going into their household but I was the one getting penalised.

• You also lose the Marriage Allowance when you hit the higher rate threshold. Another £252 loss, impacting families in which one parent has had to give up a career to care for a disabled child. 

Transferring National Insurance credits

If you’re working and getting Child Benefit – you might be building up more National Insurance credits than you need.

The good news is you can transfer them to your partner if they’re not working or are on a low income and not paying National Insurance contributions.

You can make transfer claims on an annual basis after the end of each tax year

SOURCE OF INCREASED TAX THRESHOLD

Paul Lewis @paullewismoney

Thanks for cut in NI. But if personal allowance had not been frozen it would be rising to £15,230 in April (2024) not £12,570 saving us £532 a year. And higher rate threshold would be £61,030 from April not £50,270. And child benefit wouldn't be taxed on incomes up to £70k not £50k.

7:39 AM · Jan 6, 2024

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