[05.04.24]
From 6th April 2024 the high income child benefit charge (HICBC) cap was increased from £50,000 to £60,000. Those responsible for a child under 16, or under 20 if they’re in approved education or training, who were affected by the previous £50,000 HICBC, have three months to opt back into child benefit. Families with one taxpayer earning up to £80,000 per year can still benefit to some degree from child benefit payments, as the charge is tapered with a 1% charge on child benefit for every £200 of income that exceeds £60,000, so if a parent or their partner, earns between £60,000 and £80,000 it may still be worth claiming.
However, it is important to note that the deadline to opt back into child benefit is 5 July 2024.
This is particularly relevant for those families who haven’t claimed child benefit in previous tax years because of the child benefit clawback, which previously started when one partner earned at least £50,000 per annum. This meant that those families with one taxpayer earning above £60,000 per year received no net income from claiming child benefit.
Where families have irregular earning due to overtime, bonuses or who are self-employed, they may be inclined to wait to see what their income will be, before they claim the child benefit. However, child benefit claims can only be backdated for a period of three months. So families need to consider carefully whether to claim child benefit.
Child benefit has increased from £24 to £25.60 for the eldest child, while the rate for other children rises to £16.95 from £15.90. Families with one child will now receive up to £1,331 a year and up to £881 a year per additional child.
To find out more about child benefit and the HICBC, click here.
Leave a comment