High Income Child Benefit Charge Returns
If you earn over £60,000 and receive Child Benefit, you might owe the High Income Child Benefit Charge. We help Cardiff families and sole traders calculate what you owe, file your return on time, and explore whether the new PAYE option makes life simpler.
How we can help with Child Benefit tax
Whether you need a Self Assessment return filed, help switching to the new PAYE service, or advice on opting out altogether, we'll make sure you're paying the right amount without the stress.
Self Assessment filing
Complete and submit your tax return with the HICBC calculated correctly, meeting HMRC's January deadline.
PAYE service switch
Help you move from Self Assessment to HMRC's new PAYE deduction service if you're eligible, simplifying future payments.
Adjusted net income advice
Work out your exact liability based on salary, pension contributions, Gift Aid and other factors that affect the charge.
Opt-out guidance
Explore whether stopping Child Benefit payments makes sense if the charge wipes out most or all of what you receive.
How the High Income Child Benefit Charge works
If you or your partner earns over £60,000, HMRC expects you to repay some or all of the Child Benefit you receive. The charge starts at 1% for every £200 above the threshold, reaching 100% at £80,000. It applies to the higher earner in your household, even if you're not the one claiming the benefit.
Many Cardiff families only discover they owe this charge when they receive a penalty notice. We help you get ahead of it: calculating what you owe, filing your return on time, and making sure you're not paying more than necessary.
We take the guesswork out of adjusted net income, so you know exactly where you stand.
More information
Filing your return or switching to PAYE
Until recently, everyone liable for the charge had to file a Self Assessment tax return by 31 January. Since September 2025, HMRC now offers a PAYE service for eligible taxpayers: if you only owe Self Assessment because of this charge, you can deregister and have it collected directly through your salary instead.
We'll help you decide which route makes sense. If you have other self-employed income, rental income or capital gains, Self Assessment is still the right choice. If the charge is your only tax obligation, switching to PAYE can save you the annual filing admin. HMRC writes to eligible individuals, but the letter can be confusing. We translate it into plain English and handle the switch if you want to go ahead.
What affects your bill
Your adjusted net income isn't just your salary. Pension contributions, Gift Aid donations and trading losses all reduce it, potentially lowering or eliminating the charge. We review your full picture to make sure you're claiming every reduction you're entitled to.
If the charge wipes out most of what you receive, opting out of Child Benefit altogether might be simpler. You'll still get National Insurance credits toward your State Pension if you're the primary carer, so you're not losing out on future entitlement. We talk you through the pros and cons based on your circumstances.
Working with families across Cardiff and South Wales
We work with parents in Pontcanna, Whitchurch, Penarth and right across the capital region. Whether you're a salaried professional, a sole trader with fluctuating income, or a couple where one partner is self-employed, we tailor the advice to your situation.
If your income hovers around the threshold, small changes can make a big difference. Increasing pension contributions or timing bonuses carefully might reduce or eliminate the charge. We look at your options each year and help you plan ahead, so there are no surprises when the bill arrives.
Worth considering
HMRC Investigation Support
Support for HMRC enquiries and investigations, from the first letter to closure. We review your records, manage HMRC correspondence and help resolve tax and penalties.
HMRC Investigation Support→Non-Resident Tax Returns
Preparation and filing of UK non-resident Self Assessment returns, including UK property income, relief claims and HMRC follow-up, so you stay compliant.
Non-Resident Tax Returns→Inheritance Tax Planning
Inheritance tax planning that maps your estate, estimates IHT, and sets a clear action plan using reliefs, gifting and ownership changes where suitable for you.
Inheritance Tax Planning→Capital Gains Tax Advice
Practical Capital Gains Tax advice for business owners and sole traders. We calculate gains, check reliefs and handle HMRC reporting and deadlines across South Wales.
Capital Gains Tax Advice→Personal Tax Planning
Personal tax planning for Cardiff business owners and sole traders. Forecast your tax bill, use key allowances, and plan payments and profit withdrawals.
Personal Tax Planning→Self Assessment Tax Returns
We prepare and file your HMRC Self Assessment tax return, check expenses and reliefs, and give a clear summary of tax due and key payment dates.
Self Assessment Tax Returns→Before you get in touch
These are the questions Cardiff families ask us most often about the High Income Child Benefit Charge.
How do I know if I need to pay the charge?
What counts as adjusted net income?
Can I use the new PAYE service instead of Self Assessment?
What happens if I don't report the charge?
Is it better to opt out of Child Benefit?
How much do you charge to file my return?
Do you cover clients outside Cardiff?
Can you help if my income changes during the year?
Let's talk about your Child Benefit charge
Book a free consultation and we'll explain your options, calculate what you owe, and take the stress out of staying compliant.
Book a free consultation