HMRC Reminds High Earners to Check Child Benefit Charge

HM Revenue and Customs has issued a reminder to parents earning more than £60,000 annually to check their eligibility for the High Income Child Benefit Charge, which requires repaying part or all of Child Benefit payments. The tax authority shared the message on the social media platform X on April 12, urging higher earners to review their situation to avoid unexpected tax bills.

The charge applies to households where at least one partner receives Child Benefit and has an adjusted net income exceeding £60,000. Adjusted net income includes salary, savings interest and dividends, calculated before personal allowances but after deductions such as pension contributions and Gift Aid. If both partners surpass the threshold, the individual with the higher income is responsible for the repayment. The system operates on a sliding scale: for every £200 earned above £60,000, one percent of the Child Benefit must be repaid. At £80,000 or more, the full amount is due. For instance, someone earning £67,600 would repay 38 percent of the benefit.

Child Benefit provides £27.05 per week for the eldest or only child and £17.90 for each additional child, totaling £2,377.40 annually for a family...