When did I become liable for the High Income Child Benefit charge?

greengirl89

I've claimed child benefit for the last few years but previously my husband was the higher earner so paid the high income charge through self-assessment. Near the end of the 2024-25 tax year his income fell below mine (and below the £60k) threshold due to a new job. However, during that tax year he still earnt more than me across the whole year and so did his self-assessment and paid the charge.

For the 2025-26 tax year, I was then the higher earner. I've just registered for self-assessment but it asked me the date I 'became liable' and said this could be due to things like having a pay rise during the year. I therefore put the date after my husband left his job, though this was still in the 2024-25 tax year. I'm now worried they're going to say I should have done a self-assessment for 2024-25 as well. I don't know if I should have put the first day of the 2025-26 tax year instead?

Essentially do you become liable on the date you officially earn more than your partner, or the first day of the tax year where you earnt more across the year?

QrizB

In 24-25, did you earn more than £60k?

greengirl89

https://forums.moneysavingexpert.com/discussion/comment/82109500#Comment_82109500

Yes (but my husband earnt more therefore he did the self-assessment as the higher earner out of us both)

QrizB

Essentially do you become liable on the date you officially earn more than your partner, or the first day of the tax year where you earnt more across the year?

Per https://www.gov.uk/child-benefit-tax-charge whoever has the highest income for the tax year pays the charge. It doesn't matter what your annuallised qeuivalent income is on any paticular day of the year, it's the total income over the year that counts.

So your husband was liable for 24-25, as he had the highest income for the tax year.

You're liable for 25-26, as you had the highest income.

Your incomes for 26-27 will determine which of you is liable.

Note also that the relevant number is adjusted net income; if eg. you earned £70k while your husband earned £80k but he also made £20k of pension contributions, you've got the higher income not him.

UKTaxHelper

The date only decides which year HMRC opens a return for. Put 6 April 2025 and ring them to pull the 24-25 one, becuase once a return has been issued you have to file it even with no charge due.

greengirl89

Thanks - very helpful. I'll give them a ring tomorrow. What confused me was the examples given were if you had a pay rise etc which I still don't understand because you might still be below the threshold for a given tax year.

greengirl89

For the benefit of anyone else reading this with a similar question - I called HMRC and they've confirmed that in these circumstances the correct date should be the first day of the tax year you become liable (i.e. as the posters above have said). Unfortunately they now can't help me over the phone and I need to write them a letter!

Hopefully this post helps others.

UKTaxHelper

Glad they confirmed it. In the letter, ask for the notice to file to be withdrawn, in those exact words. Until a withdrawal notice comes back in writing the return is still due and the late penalties keep ticking over.