HMRC WARNING TO PARENTS ON £60,000 EARNINGS THRESHOLD

HM Revenue & Customs has issued a warning to parents that earning above £60,000 may trigger the High Income Child Benefit Charge, requiring repayment of some or all Child Benefit received. HMRC stated on social media: "Attention parents! Recently had a pay rise? If you're now earning over £60k and you get Child Benefit you may need to pay some of it back." The tax body has launched a new digital service through its app and website allowing qualifying taxpayers to settle the charge via their PAYE tax code rather than filing Self Assessment returns.

The High Income Child Benefit Charge activates when either partner in a household has adjusted net income exceeding £60,000 whilst receiving Child Benefit. The charge rises progressively above that threshold, with families required to repay the entire amount when earnings reach £80,000. The charge depends on the higher-earning partner's income regardless of which parent receives the Child Benefit. Previously, many parents were forced to register for Self Assessment solely to handle this charge, a requirement the new service aims to address.

HMRC's warning arrives as reported salary increases make it more likely that parents previously unaffected by these rules will now face unexpected tax bills. The new digital service represents an attempt to simplify administration for households affected by the charge. The alert underscores the interaction between income thresholds and benefit entitlement, as earnings growth pushes more families above the £60,000 point.