ACCA Applied Skills · Taxation (UK) · Income from employment
In the 2025–26 tax year Marcus received child benefit of £2,400. His adjusted net income was £72,000 and his partner's adjusted net income was below £60,000. Using the child benefit income tax charge in the tax tables, what is Marcus's child benefit income tax charge?
The charge is £1,440. Adjusted net income exceeds £60,000 by £12,000, which gives 60 steps of £200, so 60% of the £2,400 child benefit received is charged to income tax.
- A£1,440Correct
- B£2,400
- C£1,200
- D£1,680
Explanation
Income over £60,000 is £12,000. The charge is 1% of the child benefit for every £200 of excess: 12,000/200 = 60, so 60%. 60% × £2,400 = £1,440. The distractor £1,200 wrongly uses 50% (a base of £70,000 instead of £60,000 for the excess).
Did you get it right without looking?
One question tells you little. A timed set on Income from employment shows your real accuracy, how long you take and where you lose marks.
More Income from employment questions
- Marcus is employed by Orwell Ltd throughout the 2025–26 tax year. He is paid a basic salary of £30,000 and a bonus of £6,000. The bonus was …
- Which one of the following statements about an individual treated as self-employed rather than employed is correct for the 2025/26 tax year?
- Hannah received child benefit of £1,000 in the tax year. Her adjusted net income was £60,500. What is her child benefit income tax charge?
- In 2025–26 Raj received child benefit of £1,500. His adjusted net income was £60,000 exactly. What is his child benefit income tax charge?
- Anita is employed and, in 2025–26, her employer pays her salary of £45,000. Her employer is not entitled to the employment allowance. What i…
- Which of the following best describes how the child benefit income tax charge applies when income is between £60,000 and £80,000, according …