The high-income child benefit charge (HICBC) claws back child benefit in full where the adjusted net income of the highest earner in the household exceeds the upper threshold. It is also repaid in part (proportional to income level) where the adjusted net income exceeds the lower threshold. From 6th April 2024, the lower threshold is increasing from £50,000 to £60,000 and the upper threshold from £60,000 to £80,000.
In light of these changes, a person who previously opted not to claim child benefit should reconsider their position.
For example, a person earning £70,000 per year would have been subject to the full claw back of child benefit for 2023/24 and therefore may have chosen not to claim it. From 6thApril 2024, however, HICBC would claw back only 50% of the child benefit in
this scenario, allowing the remainder to be kept.
If you want to start / restart claiming child benefit, the timing of doing so is critical because child benefit can be backdated for three
months, or to the date of birth of the child if later. For HICBC purposes, the backdated claim will fall into the 2023/24 tax if year if made before 6th April 2024. Conversely a backdated claim made after 6thApril 2024 would fall into the 2024/25 tax year for HICBC purposes which for many will reduce, or mitigate, the charge entirely.
Continuing with the example above of a person earning £70,000 per year, if that person submits a child benefit claim on 1st May 2024, the backdated payments from 1st February 2024 to 30th April will fall into 2024/25. The HICBC suffered in 2024/25 would claw back 50% of this. Meanwhile, had that person instead made a claim before 6thApril 2024, the backdated payments would be clawed back in full as it would be assessed to the HICBC in 2023/24 before the thresholds are increased.
You can claim child benefit, or opt to receive payments having made a claim earlier, by using HMRC’s app or online claim form.
There may be other advantages to claiming child benefit that should be considered separate to the HICBC position. This is because it can protect your entitlement to contributory benefits like the state pension. A parent who has been awarded child benefit for a child under 12 may be awarded class 3 national insurance contribution credits automatically.