Are you affected by the High Income Child Benefit Charge (HICBC) and unsure about managing the tax implications? Taxwise Accountancy is here to help. Our online tax advisers specialize in managing the HICBC through efficient Self Assessment tax return services, helping you navigate this specific charge with ease and accuracy.
The High Income Child Benefit Charge (HICBC) is a tax charge applied to individuals whose income exceeds certain thresholds and who receive Child Benefit, or whose partner receives it. From the 2024/25 tax year, the HICBC will affect individuals with an income exceeding £60,000, and it will fully offset the benefit if income reaches £80,000.
Important Note:
Only one partner needs to exceed the income threshold for the charge to apply. This charge affects many families and requires those impacted to register for and complete a Self Assessment tax return.
Income threshold where HICBC starts to apply (2024/25)
Income level where full Child Benefit is reclaimed
The HICBC calculation is based on the income of the highest earner in a household:
From 2024/25 tax year onwards
The HICBC is calculated at a rate of 1% for every £100 of income above the £60,000 threshold.
Example: If your income is £65,000, you exceed the threshold by £5,000. The charge would be 50% (£5,000 ÷ £100 = 50) of the Child Benefit received.
From 2024/25 tax year onwards
The charge equates to the full amount of Child Benefit received, effectively reclaiming the benefit through the tax charge.
Important: At this income level, 100% of the Child Benefit received will be charged back through your Self Assessment tax return.
Calculating the exact HICBC amount and reporting it accurately to HMRC can be complex. This is where our team of expert tax advisers in Luton can make a difference.
Get Professional AssistanceIf you or your partner's income exceeds £60,000 and you are receiving Child Benefit, you must file a Self Assessment tax return.
If you haven't filed a Self Assessment before, we can assist with the registration process, ensuring you meet all deadlines.
HICBC is based on adjusted net income, so it's essential to calculate it correctly. Our tax advisers will help identify deductions and allowances to determine your accurate net income.
Missing Self Assessment deadlines can lead to fines. We ensure timely filing, so you avoid penalties.
We ensure your tax return is fully compliant with HMRC regulations, giving you complete peace of mind.
Fixed Price: £149 + VAT
For preparation and submission of HICBC Self Assessment tax return
Get Started TodayOur Self Assessment services simplify the HICBC process and ensure that your tax return is accurate, compliant, and filed on time.
We'll handle the full calculation of your HICBC, taking into account the new thresholds and ensuring you pay only what's due.
Our team prepares and files your Self Assessment tax return, so you can be confident that everything is correct, from income reporting to HICBC inclusion.
If your income is near the threshold, we can provide tax planning advice to reduce your liability where possible, helping you understand your options and minimize tax exposure.
For some families, opting out of Child Benefit payments might make sense. We'll help you weigh the benefits and costs, so you can make an informed decision about withdrawing from Child Benefit if needed.
We're here to answer all your questions, address any concerns, and guide you throughout the process. Our ongoing support ensures that you understand every step and remain compliant with HMRC regulations.
At Taxwise Accountancy, we are dedicated to providing expert help and guidance for your High Income Child Benefit Charge (HICBC) and Self Assessment needs.
Our team of experienced tax advisers specializes in UK tax laws, including the complexities of the HICBC. We have the knowledge and expertise to handle your tax matters with professionalism and accuracy.
We believe in transparent pricing, ensuring that you know the cost of our services upfront, without any hidden fees or surprises. Fixed price of £149+VAT for HICBC returns.
With Taxwise Accountancy, you can trust that your Self Assessment will be filed accurately and submitted on time. By entrusting us with your tax return, you can avoid penalties and reduce stress.
Common questions about the High Income Child Benefit Charge
Our expert tax advisers are here to help you understand your HICBC obligations.
Contact Us TodayDealing with the High Income Child Benefit Charge can be confusing, but you don't have to handle it alone. Contact Taxwise Accountancy today to schedule a consultation with our expert tax advisers.
Taxwise Accountancy
16 Titan Court, Laporte Way
Luton,
LU4 8EF
United Kingdom
Monday - Friday: 9:00 AM - 5:30 PM
Saturday - Sunday:
Closed
£149 + VAT
Complete HICBC Self Assessment Service