High Income Child Benefit Charge
The High Income Child Benefit Charge (HICBC) is a mechanism for high earners to have to repay Child Benefit they receive.
Where one spouse has income in excess of £50,000 per year, Child Benefit begins to be repayable to HMRC. Once income of the spouse reaches £60,000 then 100% of the child benefit received needs to be repaid. The repayment is achieved via the submission of self-assessment tax returns.
Many individuals who should be subject to the HICBC are not aware of this tax and hence have been failing to make the repayments of Child Benefit to HMRC.
HMRC have recently been undertaking an exercise of comparing data they hold appertaining to individuals income and Child Benefit payments.
HMRC are now in the process of sending out letters in respect of individuals they believe should be subject to the HICBC.