The High Income Child Benefit Charge (HICBC) was introduced in 2013 to limit the financial support provided to high income families through child benefit. Under this charge, individuals earning over £50,000 per year were required to pay back a portion of their child benefit through their tax returns ...
This benefit is paid to the main carer of a child under the age of 16 (or 20 if they are in full-time education or training). The amount received depends on the number of children in the family, with an additional amount for each child after the first. For many families, this benefit can make a significant difference in their monthly budget.
High income earners may be required to pay back some or all of their child benefit through their tax returns. The payback threshold starts at £60,000 and tapers for every £200 by 1% until it reaches £80,000 where the charge is equal to the amount of the child benefit payment.
It is also worth noting that the HICBC is calculated based on the highest earner in a household. This means that if one partner earns over £60,000 and the other earns less, the higher earner is responsible for paying back the child benefit received.
Another important aspect to consider is the impact on National Insurance contributions. Re-registering for child benefit can help individuals continue to receive National Insurance credits, which can count towards their state pension.
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