Thousands of families are missing out on an easier way to pay the high-income child benefit charge (HICBC), analysis shows.
More than 9 out of 10 families eligible to pay the charge automatically – rather than filling out via a tax return – missed out on doing so this year, according to figures obtained by wealth manager Quilter.
Child benefit is a UK government payment designed to help parents with the costs of raising a family, but those earning over £60,000 have to start repaying it via a tapered charge.
Until recently, the only way to do this was via filling out a self-assessment tax return, but a change at the last Budget means people who are employed and don’t need to file a return for any other reason can now have the money taken straight from their pay.
The change was important because experts think lots of families don’t claim the benefit at all to avoid filing out a return.
