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<p>The High Income Child Benefit Charge (HICBC) is a tax charge which applies to anyone
with an income of over £50,000 who gets Child Benefit, or whose partner gets it. The
charge increases gradually for those with incomes between £50,000 and £60,000 and
is equal to one per cent of a family’s Child Benefit for every extra £100 of income
that is over £50,000 each year. Where income exceeds £60,000, the tax charge is equal
to the amount payable in Child Benefit.</p><p> </p><p>In order to ensure that people
pay the correct tax charge, HM Revenue and Customs (HMRC) need to know both the amount
of Child Benefit received and the total taxable income. A Self-Assessment tax return
is the only means of establishing this, and avoids using estimates of income which
could result in too little, or too much, tax being paid.</p><p> </p><p>HMRC have taken
considerable steps to raise awareness of HICBC. They use a wide array of channels
to reach those who may be liable to pay HICBC and there is a prominent message about
HICBC on the Child Benefit claim form.</p><p> </p><p>In addition, where HMRC hold
all the relevant information, they write to parents who may have become liable for
HICBC, explaining what they need to do to pay the charge when it is due and avoid
penalties.</p>
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