High Income Child Benefit Charge (HICBC)

The HICBC continues to apply to the higher earner of a couple where one receives Child Benefit and either of them has income of more than a set threshold. For 2024/25, for the first time since the charge was introduced in 2012/13, the threshold has been raised from £50,000 to £60,000; the band of income over which the clawback is calculated has also increased from £10,000 to £20,000 (1% of the total benefit for every £200 of income), so that the whole benefit is lost when income reaches £80,000 (£60,000 in 2023/24). The HICBC is one reason that an individual might have to register for self-assessment and file a tax return.

The Chancellor announced plans to reform the HICBC from April 2026 to take into account the combined income of the household, rather than just the higher earner. This will reduce the unfairness of clawing back nothing from a couple each earning £59,000 (in 2024/25), compared to full clawback where one of the couple earns £80,000. However, it is not a straightforward change because it will require HMRC to have the power to consider the income of the couple rather than as two individuals.

Find more from our spring budget below:

The Spring Budget 2024 is here!