Budget representation 2021: high income child benefit charge
In our 2021 Budget representation, we repeat our calls for the government to raise the £50,000 threshold for the high income child benefit charge (HICBC) to at least £60,000. We argue that the £50,000 threshold is no longer tenable once it is set to be overtaken by the higher-rate threshold from 6 April 2021, as basic-rate taxpayers are set to become liable to the charge for the first time.
We also recommend that the point at which child benefit is fully withdrawn is increased from £60,000 to at least £75,000, in order to mitigate the disproportionate effect of the charge on larger families.
Finally, we urge the government to make changes to ensure that low-income taxpayers do not lose on out National Insurance credits as a result of not claiming child benefit where the charge is applicable.
Our submission can be found here.
Contact: Tom Henderson (click here to Contact Us)