Simplify the high income child benefit charge process

HMRC needs to do more to raise awareness of the high income child benefit charge (HICBC) and its wider implications says the Office of Tax Simplification (OTS).

In an evaluation paper the OTS considers the operation and collection of HICBC including how child benefit is claimed and how this relates to the HICBC and other matters such as National Insurance credits and the provision of National Insurance numbers.

Key issues that the government should review including:

• Clarifying the language – the individual is required to make a ‘claim’ to child benefit even when opting out of receiving the payments.
• The need to claim child benefit even if opting out of receiving it so that the child can automatically receive their National Insurance number.
• Allowing those who do not claim child benefit to receive National Insurance credits to which they are eligible.
• Improving awareness of the charge...