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HMRC internal manual

PAYE Manual

Coding: adjustments to collect tax: high income child benefit charge (HICBC)

Legislation was introduced in the Finance Bill 2012 which, with effect from 7 January 2013, imposes a ‘High Income Child Benefit Charge’ (HICBC) on an individual who has Adjusted Net Income (ANI) (PAYE13085) above £50,000 in a tax year, where either they or their partner are in receipt of Child Benefit during the year.

If both partners have ANI above £50,000, the partner with the higher income is liable for HICBC.

Note: From 6 April 2016 the Scottish rate of income tax will apply where an individual is resident in the United Kingdom (UK) for tax purposes and who has their sole or main place of residence in Scotland for more time than any other part of the UK. The Scottish rate of income tax is the amount of income tax Scottish taxpayers will pay on their non-savings and non-dividend income. Where the Scottish income tax rate applies the tax code will include an S prefix (except for code NT), e.g. S1100L, SD0.

Further information is given at PAYE100035

Where an individual is identified as a Scottish Taxpayer, it is crucial that the Scottish income tax rate is used in calculating the High Income Child Benefit Charge. The limits shown below still apply.

The tax rates are the same for all in the tax year 2016-17 but differ for 2017/18.

HICBC is applied at the following rate

  • One per cent of the full Child Benefit award, for each £100 of income which falls between £50,000 and £60,000
  • Equal to the full Child Benefit award, for income above £60,000


An individual has income of £54,000 and their partner receives Child Benefit for two children of £1,752 for the full tax year.

The percentage is determined as follows

£54,000 - £50,000 = £4,000 / 100 = 40 per cent

The HICBC will be 40 per cent of £1,752, which is equal to £700.

Child Benefit claimants will be able to choose not to receive Child Benefit if they or their partner do not wish to pay HICBC. However they should continue to notify Child Benefit Office (CBO) of any new children, or change in their circumstances, as entitlement to Child Benefit (even if not received) entitles the claimant to National Insurance credits.

Note: HICBC will be collected through Self Assessment, but can be included in the tax code as part of the SA Autocoding process, see PAYE13150.

All HICBC work outside of SA Processing will be done in Bootle. Guidance is available on the Guidance Gateway under the heading ‘Specialist Teams’.

For more information regarding the calculation of the Child Benefit charge, see PAYE130030.


HICBC may be payable by the partner who does not receive Child Benefit, or by the partner with the higher income. There will be occasions where partners are unable to discuss income levels or whether Child Benefit is being received. In these cases we will provide the minimum information necessary in the form of yes or no answers.

This will not be dealt with as part of day to day work we will not reply to any queries over the phone or in person. All requests for information should be directed to

HM Revenue and Customs
PO Box 192
L69 9ZW