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March 9, 2022

Anna Murray 

Based on an analysis from insurance company NFU Mutual, 84% of those polled are unknown of the UK's child benefit tax.

Under this unawareness, this tax will include over 1.6 million households. When their highest wage rises above £50,000, they need to return part of or whole child benefit according to notices of HM Revenue & Customs.

NFU Mutual indicated the different opinions upon this tax’s fairness. 58% of those polled regard it as fair, while 42% do not. One of the reasons is as follows. In one family, one earns with £60,000 income needs to repay all child benefit. However, in the same situation, 2 earners with their separate £50,000 income can keep all of it.

To manage wisely, some experts suggest adding more into pensions when income is close to £50,000. Therefore, they can lower their income and avoid repaying child benefits.