High Income Child Benefit Charge
The high income child benefit charge (HICBC) is a tax paid by high earners and is collected through the completion of a self-assessment tax return. It is payable if either the child benefit claimant or their partner had income that exceeded the adjusted net income threshold. The threshold was £50,000 until 5 April 2024. From 6 April 2024 the threshold increased to £60,000.
In spite of the fact that the HICBC has been around since 2013, it seems that many taxpayers are either unaware that it is due or are aware but have paid the wrong amount of HICBC.
The HICBC was the focus of a recent HMRC ‘one-to-many’ campaign regarding incorrect 2022/2023 tax returns. Targets of this campaign will have received a letter from HMRC asking them to amend their tax returns. Taxpayers have until 31 January 2025 to submit an amended 2022/2023 tax return.
HMRC’s stated aim with their ‘one-to-many’ campaigns is to influence taxpayer behaviour in circumstances where they believe there may have been a loss of tax. Other recent campaigns have targeted dog and cat breeders, cryptoassets, investor relief claims, landlords and the construction industry scheme.
Please get in touch below if you have received a ‘one-to-many’ letter from HMRC regarding the HICBC and need help submitting your tax return.
