For some time now, HMRC have had the power to claw back some or all of the Child Benefits you receive if either parent’s income exceeds £50,000.
The benefit is recovered by the High Income Child Benefit Charge (HICBC). This states that if either parent had income over £50,000 and:
- either partner received Child Benefit, or
- someone else received Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep.
Then part or all of the Child Benefit received may need to be paid back to HMRC. It doesn’t matter if the child living with you is not your own child.
You may not have considered the HICBC before if your...