HMRC have commenced another one-to-many campaign, this time targeted at taxpayers already in Self Assessment who have either declared the wrong amount of Child Benefit or missed it off their 2022-23 tax return completely. Where this is the case, the High-Income Child Benefit Charge (HICBC) will be incorrectly calculated.
The letters ask recipients who need to amend their returns to do so by 30 September 2024. This is a deadline for this campaign specifically as the normal statutory deadline for amending the return for 2022-23 remains 31 January 2025. HMRC will take no further action if customers self-amend.
The letter acknowledges that taxpayers may already have paid The charge or Checked they don't need to pay it. Where this is the case, no further action is needed. HMRC are aware that most errors are rarely deliberate.
The HICBC was first introduced in 2013. It is not assessed as income but is reportable and collected under Self Assessment (SA). There are no specific penalties applied to it but the standard Penalties under SA do apply. Taxpayers who must declare the HICBC are required to Register for SA, and then pay their HICBC by 31 January following the end of the relevant tax year. Anyone earning more than the Upper Limit which increased to £80,000 from 6 April 2024, can elect not to receive Child Benefit so they are not required to make the calculation.
Useful guides on this topic
How to work out the High-Income Child Benefit Tax charge
How do you work out the High-Income Child Benefit Tax Charge?
High-Income Child Benefit Tax Charge
What is the High-Income Child Benefit Charge? Who pays it? Can you appeal against an assessment? Are there any useful cases from the tax tribunals?
Penalties: SA late filing, payment, notification & error
Self Assessment (SA) tax penalties: what penalties are due for outstanding tax returns? What penalties are due for late payment? Are there special rules for delays affecting victims of the Post Office Horizon scandal and due to COVID-19?
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your Unique Tax Reference code (UTR).
External link
HMRC One to Many letter - High-Income Child Benefit Charge Inaccuracies 2022/23
