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Articles
HMRC’s newly launched online service means that taxpayers can pay a high income child benefit charge (HICBC) in real time. It should reduce the number of individuals who have to register for self assessment only for HICBC.
The charge
The HICBC only applies when an individual – or their partner – receives child benefit and their annual income exceeds £60,000, with the charge removing 1% of the child benefit for every £200 of income over £60,000. Once income reaches £80,000, the charge is 100% so the amount of child benefit is essentially reduced to nil.
Online service
The new service allows employees to pay their HICBC via PAYE, provided they have no other reason to complete a self assessment tax return, such as having property income. Keep in mind:
Thereafter, HICBC will just be collected in the tax year it relates to.
If an individual has already registered for self assessment to pay their HICBC, they must deregister from self assessment to use the online service.
THE AUTHOR
Senior Manager, Payroll
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