High Income Child Benefit Charge (HICBC)

The HICBC was introduced on 7 January 2013 and applies to couples where:

  • One partner has received Child Benefit payments after 7 January 2013, and
  • Either partner has income in excess of £50,000 a year. The person with the highest income, if both are over £50,000, will be liable to pay the charge.

 It will not apply if the person entitled to receive Child Benefit stops their claim for a complete tax year (or for the period 7 January 2013 to 5 April 2013, for the tax year 2012-13).

 In effect, the charge recovers the actual Child Benefit received using a graduated scale. 1% of benefit received will be recovered for every £100 the highest earner’s income exceeds £50,000. Accordingly, if the highest earner’s income exceeds £60,000, all of the Child Benefit received will be clawed back.

 The partner with the highest income in excess of £50,000, and where either partner received any Child Benefit payments from 7 January 2013 to 5 April 2013, will need to declare the benefit received on their Self Assessment tax return for 2013.

 If you are not registered for Self Assessment you must do so by 5 October 2013.

 If you are concerned that you may be caught by the HICBC, and would like assistance with the registration or reporting process, please call.

Original post by Latest Taxation News and many thanks to them and their entry and picture of their BMX Bike