Seven years since its introduction, the HICBC is in need of urgent reform if it is to be fit for purpose, says Carla Hoppe (Wealthbrite).
A stealth tax on working families
The HICBC was introduced by George Osborne with effect from January 2013as a way to clawback universal child benefits for those classed as higher rate taxpayers (see ITEPA 2003 Part 10 Chapter 8 (ss 681B-681H)).
The benefit is taken back as an income tax charge on the higher earner calculated on a sliding scale and is equal to 1% of the amount of child benefit for each £100 of income between £50 000 and £60 000. Someone earning £55 000 a year has to repay half the child benefit they or their partner received that tax year. For those earning more than £60 000 the charge is equivalent to 100% of the child benefit received (ITEPA...
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Seven years since its introduction, the HICBC is in need of urgent reform if it is to be fit for purpose, says Carla Hoppe (Wealthbrite).
A stealth tax on working families
The HICBC was introduced by George Osborne with effect from January 2013as a way to clawback universal child benefits for those classed as higher rate taxpayers (see ITEPA 2003 Part 10 Chapter 8 (ss 681B-681H)).
The benefit is taken back as an income tax charge on the higher earner calculated on a sliding scale and is equal to 1% of the amount of child benefit for each £100 of income between £50 000 and £60 000. Someone earning £55 000 a year has to repay half the child benefit they or their partner received that tax year. For those earning more than £60 000 the charge is equivalent to 100% of the child benefit received (ITEPA...
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