Claim Child Benefit even if you will not keep it

Registering protects the National Insurance credits of whoever is at home — a qualifying year each year, worth roughly £300 a year of State Pension for life — and gets the child a National Insurance number automatically at 16. If the charge would take it all, claim and elect not to be paid.

The charge starts at £60,000

Above £60,000 of adjusted net income the higher earner pays a charge clawing back 1% of the benefit for every £200, until it takes all of it at £80,000.

A pension contribution removes the charge

The charge is measured on adjusted net income, which pension contributions reduce. Inside the window a contribution buys back the benefit as well as the income tax, so the combined relief is well above the headline rate.

Childcare support has its own thresholds

Tax-Free Childcare gives £2 for every £8 you pay in, up to £2,000 a year per child — but it is withdrawn entirely if either parent earns over £100,000. Another cliff edge a pension contribution can clear.

What tax and benefits change when I have a child?

Child Benefit, the High Income Child Benefit Charge, tax-free childcare, and why you should register even when the charge would take all of it.

What changes for you

Claim Child Benefit even if you will not keep it
Registering protects the National Insurance credits of whoever is at home — a qualifying year each year, worth roughly £300 a year of State Pension for life — and gets the child a National Insurance number automatically at 16. If the charge would take it all, claim and elect not to be paid.
The charge starts at £60,000
Above £60,000 of adjusted net income the higher earner pays a charge clawing back 1% of the benefit for every £200, until it takes all of it at £80,000.
A pension contribution removes the charge
The charge is measured on adjusted net income, which pension contributions reduce. Inside the window a contribution buys back the benefit as well as the income tax, so the combined relief is well above the headline rate.
Childcare support has its own thresholds
Tax-Free Childcare gives £2 for every £8 you pay in, up to £2,000 a year per child — but it is withdrawn entirely if either parent earns over £100,000. Another cliff edge a pension contribution can clear.

The decisions this opens up

Each works on your own figures and shows every option with the workings. Free, and no sign-up.

Should I keep claiming Child Benefit?Works out the High Income Child Benefit Charge on your income, what a pension contribution would save, and why opting out of the payment is almost never the right answer.How can I reduce my higher-rate tax?Finds the thresholds sitting above and below your income, and shows what a pension contribution to each one is actually worth — including the 60% band and the child benefit charge.Should I make a pension contribution?You have spare cash. This compares putting it in a pension, an ISA, or leaving it in savings — projected forward and taxed correctly at both ends.

Dates this puts in your diary

Within 3 months of the birthClaim Child Benefit — backdating is limited to three months
5 OctoberRegister for Self Assessment if the charge applies

Run the numbers

Child Benefit Tax Calculator Tax Free Childcare Calculator 60 Percent Tax Trap Calculator

Software that files it for you

Partner links

If you keep your own books, these are the packages that handle Self Assessment and Making Tax Digital.

FreeAgent

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QuickBooks

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Xero

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MTD ready

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