If you, or your partner, earned more than £50,000 last year then you need to file a tax return before 31st January 2025 to avoid penalties from HMRC as well as paying the High-Income Child Benefit.
For the 2023-24 tax year, If you earned £50,000 or above (rises to £60,000 for the 24-25 year), you will continue to receive Child Benefit each month, but you’ll need to pay some of it back through a self-assessment tax return which is due by 31st January 2025.
The child benefit charge is applied on a sliding scale, so the more you earn over £50,000 the more you pay back. For every £200 above £50,000 you earn, you’ll pay back 1% of the child tax benefit you receive.
Even if you have to pay the charge, it is still beneficial to claim Child Benefit, as you can still get other advantages of Child Benefit like National Insurance credits.
To pay the tax charge, you’ll need to:
If you need to complete a Self Assessment tax return, contact us today!