HM Revenue and Customs (HMRC) has issued a new alert to Child Benefit claimants whose income is above a certain level, reminding them of a new way to pay the High Income Child Benefit Charge (HICBC) and an approaching deadline.
Child Benefit is a tax-free financial support payment from the Government for parents or guardians of a child under 16, or under 20 if they stay in approved education or training, according to the GOV.UK website. The support is worth £27.05 a week – or £1,406.60 a year – for the eldest or only child, and £17.90 a week for each additional child. Claiming it also brings National Insurance credits that count towards the State Pension, and a National Insurance number for the child without them having to apply for one.
Who needs to pay the High Income Child Benefit Charge
If a Child Benefit claimant or their partner has an individual adjusted net income exceeding £60,000, the higher earner may need to pay the High Income Child Benefit Charge (HICBC), the department explains. The charge is 1% of the Child Benefit for every £200 earned over the threshold. If the individual adjusted net income is £80,000 or more, the full amount of Child Benefit must be paid back.
In a post on X this weekend, the UK tax authority wrote: "Earning between £60,000 and £80,000? Claiming Child Benefit? Our new High Income Child Benefit Charge digital service lets you pay through your salary – no need for Self Assessment. Find out more on the HMRC app or online."
New digital service replaces Self Assessment
The charge had previously been handled through self-assessment, meaning someone who exceeded the threshold and received Child Benefit would have to file a return even if they would not otherwise need to. The change means parents can simply inform HMRC of their current circumstances and, if necessary, have their tax code changed so HMRC can collect the charge directly, saving time and admin.
The alert comes as an important deadline looms. Families whose teenager is remaining in non-advanced approved education or training can continue to claim Child Benefit, but only if parents take action before August 31.
Deadline for families with teenagers
Child Benefit cannot be claimed for children doing a university degree, a standard apprenticeship in England, or a course that forms part of a job contract. Action is only required if the teenager is beginning a new course or qualifying training in September. If the teenager is already partway through a course previously notified to HMRC, the department does not need to be notified.
Payments will stop automatically for anyone who has not responded by the deadline. However, Child Benefit can be backdated for up to three months from the date the claim is made, so anyone who misses the deadline should contact HMRC as soon as possible. More information is available on the GOV.UK website.
