Date posted: 11th Jul 2025
If you or your partner claim Child Benefit and either of you earns over £60,000, you may need to repay some or all of it. This is done through your Self Assessment tax return and can result in a significant charge depending on your income level.
This is because of the High Income Child Benefit Charge (HICBC). It’s a tax aimed at reclaiming Child Benefit from higher earners and can often catch people unaware, especially if their income has recently increased.
Key Points:
-
If either partner earns more than £60,000, you must start repaying Child Benefit through the tax system.
-
At £80,000 or more, the full amount is clawed back.
-
The charge is based on the highest earner’s income, not who received the benefit.
-
Even if you stopped the payments, you may still need to register and file a tax return. This ensures HMRC has accurate records and helps you avoid penalties.
What You Need to Do:
-
If you earned over £60,000 and got Child Benefit in 2024/25, tell us. We’ll make sure the HICBC is included in your return.
-
If your income was close to the limit, get in touch. Certain reliefs may help reduce the charge. We can review your full tax position to identify opportunities for savings or adjustments.
Penalties for Non-Declaration:
HMRC has issued fines for failing to declare Child Benefit properly. If you’re unsure whether the charge applies to you, it’s better to check now. That way, you avoid any surprise bills later on and stay compliant with HMRC requirements.
Need Help?
We can advise if the Child Benefit charge applies to you. We’ll also make sure everything is correctly reported to HMRC and help you meet all filing deadlines.
Contact us today to review your position.
