A critical review of how the government taxes child benefits has raised a major question mark over HMRC’s approach to collecting payments. Child benefit tax, or the High-Income Child Benefit Charge (HICBC) to use its legal name, is a case study in how not to introduce and operate a tax. It was designed as a quick fix to political pressure for the withdrawal of child benefit from high earners during a period of austerity. When the HICBC was introduced in January 2013 – not eve

We’re now in the year of the Tiger according to the Chinese zodiac, which can symbolise resilience and strength. That may well be required after Wednesday 6 April ushers in the new 2022/23 tax year. New years are normally a cause – or excuse – for celebration, even if the pandemic has changed that in recent times. From a personal financial standpoint, this upcoming tax year may well offer more concern than celebration. Income tax Usually the new tax year begins with an inf

The changes to national insurance contributions (NICs) announced in the Spring Statement in March were not straightforward. Let’s set the record straight. In his Spring Statement – or was it a mini-Budget? – the Chancellor announced several changes to NICs aimed at reducing the impact of the 1.25 percentage points increase in the rates that took effect on 6 April. The mechanism by which Mr Sunak did this was complicated by the last-minute nature of the change, two weeks befor