High Income Child Benefit Charge

Graeme1978uk

Hi,

I changed jobs in June 2023 to one that came with a significant salary increase.

As a result, for Tax Year 2023-2024 I have earned over the threshold for the HICBC. My total taxable income was about £54k. My wife (who claims the CB) earns under the £50k threshold for 2023-2024.

I only realised this week and have registered for Self Assessment and filled out a return. We claimed a total of £2408 in CB (2 children for the full year and 1 for part of the year) and the self assessment calculator says that I owe just over £1,000. The numbers seem to stack up but I was wondering if I opt for PAYE repayments, will that start immediately or will it be from the next tax year in April 2025?

Thanks in advance!

Dazed_and_C0nfused

Graeme1978uk said:

Hi,

I changed jobs in June 2023 to one that came with a significant salary increase.

As a result, for Tax Year 2023-2024 I have earned over the threshold for the HICBC. My total taxable income was about £54k. My wife (who claims the CB) earns under the £50k threshold for 2023-2024.

I only realised this week and have registered for Self Assessment and filled out a return. We claimed a total of £2408 in CB (2 children for the full year and 1 for part of the year) and the self assessment calculator says that I owe just over £1,000. The numbers seem to stack up but I was wondering if I opt for PAYE repayments, will that start immediately or will it be from the next tax year in April 2025?

Thanks in advance!

There are two questions on the return you need to consider.

One relates to how the tax due for 2023-24 is collected.  If you choose PAYE then it is your 2025-26 tax code, starting in April 2025, when this starts.

The second is about keeping your current tax code up to date, nothing whatsoever to do with the tax owed for 2023-24.

Make sure you understand both and answer them appropriately.

Graeme1978uk

Thank you for the reply @Dazed_and_C0nfused but I'm not clear on the 2nd part?

The HICBC threshold for tax year 2024-2025 has been increased to £60k which I don't think I'll quite hit in this tax year so I to my knowledge the current tax year won't require any change?

Does that sound right? Sorry for the questions but I've been PAYE all my life and never had to look at self assessment until this week!

Dazed_and_C0nfused

Graeme1978uk said:

Thank you for the reply @Dazed_and_C0nfused but I'm not clear on the 2nd part?

The HICBC threshold for tax year 2024-2025 has been increased to £60k which I don't think I'll quite hit in this tax year so I to my knowledge the current tax year won't require any change?

Does that sound right? Sorry for the questions but I've been PAYE all my life and never had to look at self assessment until this week!

It might not have any impact but if you answer that question a particular way HMRC will check if your tax code needs updating.

That is unrelated to what happens with the tax owed for 2023-24.