The high income child benefit charge (HICBC) raised £416m in 2019-20 but it is a hard tax charge to administer as many of the families affected still do not know about the charge and complying with it may involve new tax compliance obligations. An estimated 630,000 people are liable for the tax charge, according to a Freedom of Information request by Quilter.

The charge was introduced in January 2013 and applies to anyone with an adjusted net income over £50,000 who receives child benefit, or whose partner gets it. The tax charge is equal to 1% of the total child benefit received for every £100 earned over £50,000. For those with an adjusted net income in excess of £60,000, the tax charge is equal to 100 per cent of child benefit payments received.

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