Chartered Financial Planner Kay Ingram explained: “Parents receiving Child Benefit, where a member of the household has income over £50,099 in the 2020/21 tax year, must pay High Income Child Benefit Charge ( HICBC). They should notify HMRC by registering for self assessment by October 5.”
However, she added that some things can be deducted from income bringing people below the threshold again.
Ms Ingram said: “Certain deductions can be made from the income counted, so that the tax charge is reduced or even eliminated.
“Some parents who have waived their right to Child Benefit, to avoid the tax charge, may be able claim once more if their income has fallen, or they can make these deductions from income.”