What is the High-Income Child Benefit Charge?
If you are eligible for Child Benefit and you have earnings above the threshold, which is £60,000 for 2024/25, you will have to repay some, or all, of the funds received depending on how much over the threshold you earn.
For every £2 over the threshold you earn, you will need to repay 1% of the benefit that you have received. We have included a table below to show you what this may look like:
It is the responsibility of the partner with the higher earnings to pay the charge.
Note: ‘Partner’ refers to someone you are either married to, in a civil partnership with, or living with as if you were. This includes someone you are not permanently separated from.
What are the changes being introduced?
At the moment, if you are liable for the HICBC (High-Income Child Benefit Charge) you must pay this via a Self-Assessment Tax Return. But, as of Summer 2025, it can be deducted from your PAYE earnings. This will remove the burden to complete an annual return, if one would not be needed otherwise.
You will be able to report your family’s child benefit payment through a new HMRC online service, and the charge will be deducted by your employer through your wages each pay period.
Keep an eye out on our website and socials for further information on this when it is released by HMRC.
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As always, if you have any questions or you’d like further support, please get in touch.
Give us a call on 01872 267 267, email us contact@whyfield.co.uk, or message us on WhatsApp 0777 49 39 111