High Income Benefit Charge PAYE

I only recently realised that I had to complete a self-assessment (I wasn't aware of the high income benefit charge for Child Benefit and I have always paid tax through PAYE). I've now submitted the overdue self assessments and paid the overdue tax bill in 2 payments at the beginning of this month. As I have only recently made payment, the payments didn't appear on my April tax statement. However, my tax code has now changed to take child benefit payments into account. My statement says that the balancing payment for 2022/23 will be included in my PAYE code for 2024/25, so what are the deductions for this year's PAYE for?

Hi,

Your tax code will include Child benefit for the current year 2023 to 2024 to try and collect any amount due during this tax year.

If you do not want this to happen you can contact our Income Tax team.

Income Tax: general enquiries

Thank you.

So I'm paying 23/24 through PAYE, then 22/23 through self assessment by Jan 24?

Sorry, I meant pay for 23/24 through PAYE this year, then 22/23 through PAYE in 24/25 (as stated on my statement)?

Hi Mur Mac,

Yes that is correct, if you have completed 22/23 tax return , and requested it be coded, it will go into your 24/25 tax code.

Your tax code for 23/24 has been amended to take Child benefit into account to try and collect anything that would be due for this year.

Thank you. 

 

If then the PAYE code is adjusted for child benefit and the individual received a letter in the past that they don't have submit self assessment tax return, will they have to anyway submit the tax return? Can the child benefit tax charge be collected via PAYE without submitting self assessment tax return?

Hi annaburrows,

If your income is still above £50,000 and you are in receipt of child benefit then yes a Self Assessment tax return will still be due. 

Thank you.

 

Hi I have received a letter today for HICBC for the year 2022/23 however we only applied for child benefit in April 2023 after the new tax year started and first payment we received was end of April 2023 so is this new tax year not the one on the letter, it appears the child benefit amount may have been backdated on this as the payment is more than other months we have received since for each month. Is there anything I need to do here as it is this tax year not last year, I will need to complete a self assessment in 2023/24 tax year but is there anything to be done from this letter received today? I tried to call up however was on hold over 30 mins on phone.

Hi, I need help with completing the self assessment for HICB, please? Do I put total wage before taxes and personal allowance and other deductions or I should use total income minus income taxes( so this myself) before personal allowance and other deductions? Also, do I complete separate self assessments for each employer income or one for all? Many Thanks

Hi, I need help with completing the self assessment for HICB, please? Do I put total wage before taxes and personal allowance and other deductions or I should use total income minus income taxes(so do this calf myself) before personal allowance and other deductions? Also, do I complete separate self assessments for each employer income or one for all? How far back dated can I transfer the child benefit credit to my spouse? Many Thanks

Hi Tom Blair,
We would need to access your record to review if the 2022/23 Self Assessment would be due.
You will need to contact HMRC. Self Assessment: general enquiries
Thank you.

Hi Olga Stamova,
It would be your salary as on your P60 or P45 which would be the salary before tax and personal allowance.
You would complete an employment page for each employment in the tax year. 
Thank you. 
 

Hi Is it possible to pay the charge for HICBC through your tax code? By filling out a self assessment form? Totally missed this detail on limits. Thanks

Hi jason kay,
If you have a HICBC then you will need to submit a Self Assessment tax return to pay the balance due.
Your tax code can be amended to include the HICBC going forward so that when you submit your tax return you will receive the credit for the HICBC dedcuted in your tax code. 
Thank you. 

Hi, we've just found out that as my husband earned over £50,000 (but under £60,000) 22/23, we have to pay back the child benefit received. He's completed the online self assessment but the total to pay is higher than the child tax benefit received. He had previously received notification that he had no further tax to pay from HMRC, so how could he have over the CTB to pay back? We're so confused.

Hi, So my wages will be increasing possibly this month or next. I am a teacher so I am waiting for the 6.5% pay increase. This will take me over the 50,000. Do I wait for my p60 in April to see what my total wage was for 23/24, to see if that was over? If it is do I then contact HMRC regarding paying the charge? I am very confused as I have never had to do a tax return before!

I have recently received a letter telling me to check whether I need to pay HICBC. My gross income is £49k but i have a company car deemed to be £5k cash equivalent. Do I need to add the two together to get my net adjusted income? Thank you

@StephanieKelly we have the exact same issue! Husband salary is over 50k but under 60k so knew we’d have a tax charge on some of the child benefit we received, just filled in the self assessment form online and the calculated charge is more than the child benefit received (and double what the child benefit calculator says we’d likely need to pay)!

Hi Stephanie Kelly,
We would need to access the record to check the calculation.
Your husband can contact HMRC at Self Assessment: general enquiries to review. 
Thank you.

Hi Victoria Poncia,
The correct amount of tax should be taken from your wage automatically if you are Pay As You Earn, even if your wage increases to the point where you become a higher rate taxpayer.
Unless you have any other Self Assessment criteria, you won't need to complete a tax return in 23/24 if your income remains below £150,000.
Thank you.