Overview
- HMRC, which posted a reminder on X over the weekend, urged anyone with income above £60,000 to check if they owe the High Income Child Benefit Charge.
- The charge applies when a household claims Child Benefit and one partner’s adjusted net income, which includes salary, savings interest and dividends, tops £60,000, with the higher earner paying if both do.
- Repayment rises by 1% of the year’s Child Benefit for every £200 over £60,000 and reaches a full clawback at £80,000.
- People not in Self Assessment can use HMRC’s app or website to set up PAYE collection before 31 January after the tax year, which changes their tax code and takes the charge from wages.
- Parents can opt out of payments to avoid the charge, but HMRC says staying registered protects National Insurance credits and an automatic National Insurance number for the child.