If you or your partner have registered for and claim child benefit, and one of you earns more than £50,000 a year, you’ll be liable for the high-income child benefit tax charge. This can be a major irritation for some couples as it needs to be paid through self-assessment. The charge increases gradually depending on how much you earn. For those earning £60,000 or more, it equals the total amount of the child benefit.
This means lots of people choose not to claim child benefit but by not claiming, you or your partner might miss out on National Insurance credits that count towards state pension entitlement.
One option is to register for child benefit but opt to not receive it. So, you don’t have to pay the tax charge but still accumulate NI credits.
A salary sacrifice arrangement may be another way with the top up going into your pension contributions to take your gross earnings below the £50,000 threshold.