I speak to many people who ask, “Should I stop child benefit payments because my income is above £50,000?” as I know I’ll have to repay it. This £50,000 isn’t a cliff edge like tax bands. Instead, it tapers off gradually, as we say in the tax world.
It stops at £60,000 and is only withdrawn by 1% for every £100 you exceed £50,000. This means, assuming your partner’s income is lower than yours, you will repay your child benefit as follows:
- £50,099 – You keep it all
- £50,100 – You repay 1%
- £55,000 – You repay 50%
- £60,000 – You repay 100%
If your income is below £60,000, I believe it is advisable to keep your claim open.