What you need to know: high income child benefit charge (HICBC)

Stephen Relf ACA CTA, senior tax writer at Croner-i, explains the tax implications of the high income child benefit charge (HICBC) from calculating the adjusted charge net income and advantages of claiming child benefit but opting out of actual payments to protect state pension

Of all areas of tax, the high income child benefit charge (HICBC) perhaps grates most with taxpayers. Although it has been with us for almost seven years, it continues to frustrate, as highlighted by a recent debate in the House of Commons and before that, by HMRC’s decision to review a number of failure to notify penalties.

This article explains how the HICBC works, liability issues and calculating adjusted charge net income

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