Child benefit high earning deduction

Child benefit high earning deduction

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Client earns over £50k and has children.

Not Married and does not live with the person who receives the child benefit.

Used the HMRC website and it came out with a NO, but just want to double check!

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By ACDWebb
18th Jan 2014 18:33

On the face of it No charge

From Finance Act 2012 Sch 1

681B High income child benefit charge

(1)A person (“P”) is liable to a charge to income tax for a tax year if—

(a)P's adjusted net income for the year exceeds £50,000, and

(b)one or both of conditions A and B are met.

(2)...

(3)Condition A is that—

(a)P is entitled to an amount in respect of child benefit for a week in the tax year 'Apparently not from the question', and

(b)....

(4)Condition B is that—

(a)a person (“Q”) other than P is entitled to an amount in respect of child benefit for a week in the tax year, Yes

(b)Q is a partner of P throughout the week 'Apparently not from the question',, and

(c)...

and

681G Meaning of “partner”

(1)For the purposes of this Chapter a person is a “partner” of another person at any time if any of conditions A to D is met at that time.

(2)Condition A is that the persons are a man and a woman who are married to each other No not apparently ...

(3)Condition B is that the persons are a man and a woman who are not married to each other but are living together as husband and wife. No not apparently

(4)Condition C is that the persons are two men, or two women, who are civil partners of each other No not apparently...

(5)Condition D is that the persons are two men, or two women, who are not civil partners of each other but are living together as if they were civil partners. No not apparently

 

So the person receiving the CB (Q in the legislation) does not apparently meet any of Conditions A-D in 681G, is not a Partner of the OP's client (P in the legislation) and therefore neither Condition A nor B of 681B is met

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By ACDWebb
19th Jan 2014 08:34

Then again I suppose

one needs to consider s681D.

Who do the children live with?

If it's

not with the client then no charge.with the client and they "receive the value of child benefit directly or indirectly from the claimant" then possibly there is.

See the Explanatory Notes at page 18 of the PDF

 

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