The charge applies if your adjusted net income exceeds £50,000 in a tax year, regardless of who receives Child Benefit.

Adjusted net income includes salary, bonuses, dividends, rental income, pensions, and savings interest, minus allowable deductions like pension contributions.

For every £100 over £50,000, you repay 1% of the annual Child Benefit received (e.g., if income is £55,000, you repay 50% of the benefit).

If income is £60,000 or more, the charge equals 100% of the Child Benefit, meaning you repay the full amount through tax.

You must register for Self Assessment if affected and complete a tax return, even if you normally don't file one.

The charge is paid via Self Assessment, not deducted from Child Benefit payments, so plan for this in your tax bill.

In couples, the higher earner is liable, even if they're not the Child Benefit recipient; if incomes are equal, the recipient pays.

Opting out of Child Benefit avoids the charge but may affect National Insurance credits for state pension eligibility.

Planning strategies include salary sacrifices, pension contributions, or gift aid donations to reduce taxable income below thresholds.

Penalties apply for late registration or incorrect declarations, so accuracy and timely action are crucial to avoid fines.