Paying the HICBC

 The High Income Child Benefit Charge (HICBC) applies to clawback child benefit where the recipient and/or their partner has adjusted net income of £60,000.

The charge is equal to 1% of the child benefit received for the year for every £200 by which adjusted net income exceeds £60,000. Once adjusted net income reaches £80,000, the charge is equal to the child benefit for the year.

HMRC have launched a new digital service which can be used by employees to pay the charge without needing to file a Self-Assessment tax return.

Clients are eligible to use the new service if they:

• Are new parents who are paying the charge for the first time
• Have begun a partnership with someone who is claiming child benefit
• They have recently had a pay rise pushing them over the threshold for the first time

Where a client is paying the charge through Self-Assessment and this is the only reason that a Self-Assessment return is filed, they may be able to switch to the new system. They should call HMRC to deregister from Self-Assessment.