Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 18 Aug 2023 17:20:38 GMT by Jason
Hi, I've received a letter from HMRC advising that I may need to pay the higher income child benefit tax for the year ending 2022. I fill in self assessment forms and my taxable income was £49,500 plus a dividend of £2,000 which was tax free as per the allowance for that year. So I thought I didn't have to pay the charge as my taxable income was under £50,000. Or is my taxable income technically £51,500 for child benefit purposes? I can't seem to find any information online about this specific scenario. Thank you
Posted Wed, 23 Aug 2023 16:20:27 GMT by HMRC Admin 25
Hi Jason,
Although you receive an allowance of up to £2,000 for dividends its still counted as taxable income for the calculation.
Thank you. 
 

You must be signed in to post in this forum.