Tax and Child Benefit

Thousands of parents are expected to receive letters from HMRC this month outlining changes to the way child benefit is claimed, including details of the new claw-back charge for higher earners.

The new system, to be introduced from 7 January 2013, will impose the “ high income child benefit tax charge” (HICBC), equivalent to 1% of the benefit received for every £100 of income on those earning between £50,000 and £60,000. 

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