If you, or your partner, receive Child Benefit payments from the state, and you have income greater than £60,000, then the High-Income Child Benefit Charge (HICBC) kicks in.

The term partner refers to a spouse, or civil partner, and can include someone you live with as if you’re married.

HIBC takes back Child Benefit payments at a rate of 1% for every £200 of income over £60,000 up to £80,000. Once your income reaches £80,000, and above, you lose all Child Benefit payments.

An option above this range is to elect not to be paid. It is often advisable to continue to be registered but not be paid, as this can help to ensure you maintain a qualifying year for State Pension purposes if you otherwise would not have been eligible.

If your income is above £60,000, and you received child benefit payments, then it’s your responsibility to notify HMRC and declare this in a tax return, so that some of the benefit payment can be recouped.

If you, and your partner, are both above the threshold, then it is the responsibility of whoever has the higher income to notify HMRC.

Where applicable, consider how income can be distributed, and assets held, between you and your spouse. This combined with pension contributions and making Gift Aid payments means you may be able to avoid the charge dependent on your combined level of earnings.