The HICBC recovers child benefit through a charge on the higher earner in a household. For 2022/23, all of the child benefit was clawed-back if someone in the household earned £60,000 or more for the year (the upper limit). The HICBC recovered part of the amount received where the person’s income was between £50,000 (the lower limit) and £60,000. 

Action required 

HMRC’s letter asks the taxpayer to check if they need to pay the HICBC for 2022/23. To help with this, the taxpayer is directed to the government’s online services to check if child benefit has been paid and to calculate the HICBC. They can also use HMRC’s app to check if they received child benefit.  

If they don’t need to pay the HICBC, or have already paid it, they do not need to take any further action. 

However, if they haven’t included the HICBC in their tax return, or if they made a mistake in calculating the amount of the HICBC, they should amend their return and pay the amount due. The letter states that they should amend their return by 30 September 2024. Note that the statutory deadline for amending the tax return for 2022/23 is 31 January 2025.  

HMRC will charge interest on any tax due for 2022/23 that was not paid by 31 January 2024, and may also charge a penalty. 

If the person finds they have made an error for 2021/22 or earlier, they should follow HMRC’s guidance to amend or submit a return.  

Claiming the HICBC for 2024/25 onwards 

The net income limits for applying the HICBC changed with effect from 6 April 2024. For 2024/25 onwards, the lower limit is £60,000 and the upper limit is £80,000. ICAEW has advised households that have not previously claimed child benefit, because they or the highest earner in their household has net income above £60,000,  to consider if they should now make a claim for 2024/25 onwards, especially if that person’s annual net income is less than £80,000.  

Further information 

• Template letter (Welsh translation)