High income child benefit tax charge ― advising the taxpayer

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

High income child benefit tax charge ― advising the taxpayer

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Introduction

Introduced with effect from 7 January 2013, the high income child benefit charge (HICBC) acts to claw back child benefit payments where the person receiving the child benefit or their partner earns at least £60,000 (£50,000 before 6 April 2024). The partner with the higher income is the person who suffers the charge.

From 6 April 2024, the rate of the income tax charge is 1% for every £200 by which the adjusted net income exceeds £60,000. This means that complete clawback of the child benefit effectively occurs where the earnings are £80,000 or above. Before 6 April 2024, the income tax charge was 1% for every £100 by which the adjusted net income exceeded £50,000 and full clawback occurred from £60,000.

Unless the person entitled to receive the child benefit elects not to receive it, the benefit is made as usual but that person or their partner will suffer the tax charge.

For full details of the tax charge and a discussion of whose income needs to be considered

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 19 Nov 2025 08:00

Popular Articles

Income tax losses ― overview

Income tax losses ― overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of

04 Mar 2021 12:19 | Produced by Tolley Read more Read more

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

Read more Read more

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more