Overview
- HMRC, which posted a warning on X on Monday, urged parents with recent pay rises or bonuses to check if they owe the High Income Child Benefit Charge.
- The charge applies to the household’s highest earner when their individual income exceeds £60,000 and someone in the home receives Child Benefit.
- Repayment increases by 1% of the benefit for every £200 over £60,000, reaching about half at £70,000 and the full amount at £80,000 or more.
- People can pay through Self Assessment or, for some employees, a new PAYE online service that lets them report and pay without filing a tax return.
- Families can opt out of payments to avoid the bill while keeping National Insurance credits for the State Pension, and failing to report can lead to tax bills, interest and penalties.