What is the high income child benefit charge?
The charge is a cost levied on people who get child benefit but also have a relatively high salary.
You may have to pay the HICBC if you have an individual income over £50,000 and either:
- You or your partner get child benefit.
- Someone else gets child benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep.
The charge is collected through self-assessment and the pay as you earn (PAYE) system, so if you have to pay the charge you have to complete a tax return.
If you earn between £50,000 and £60,000, the charge will be less than the child benefit you receive, so you’ll still be in pocket even if you have to pay the charge.
But if you earn over £60,000 you’ll repay all the money. There is still a good reason to claim child benefit though, as it can help to protect your state pension and will make sure your child receives a national insurance number.