“Families across the UK are facing a growing tax burden as frozen income thresholds steadily increase the reach of the High Income Child Benefit Charge. HMRC forecasts show that by 2028/29 an additional 35,000 households will be affected, taking the total to 359,000 families. This expansion is not the result of rising living standards, but of pushing earnings above static limits. As HMRC allows fiscal drag to do the work of tax increases, many families will see child benefit reduced or fully clawed back, often without realising they are required to submit a tax return. The result is a hidden tax rise, increased compliance risk, and unexpected tax bills for households already under financial pressure.”
Quotation by Nigel Holland.
- Frozen thresholds widen the High Income Child Benefit Charge net
- 35,000 more families affected by 2028/29
- Inflation, not real pay growth, drives the increase
- Many families unaware of tax return obligations
- Risk of unexpected tax bills and penalties rises
How Holland & Co can help
Holland & Co can support families affected by the High Income Child Benefit Charge through a Tax Position Review costing £200 plus VAT, identifying practical steps to reduce exposure and ensure compliance. This may include reviewing pension contributions, income structuring, and reporting obligations. We also assist clients in keeping better records, submitting information faster, and adopting KashFlow to simplify compliance. Where appropriate, we can carry out a more detailed Financial Health Review, assess business structures, or explore longer-term planning opportunities such as pensions or investments, positioning Holland & Co as proactive advisers rather than reactive problem-solvers.
