March Spring Budget 2024 announced a change to HICBC. Effective 6 April 2024 the adjusted net income threshold for HICBC will increase from £50,000 to £60,000. In addition, the tapering threshold will increase from £60,000 to £80,000. 
 
This means effective April 2024 individuals with income between £60,000 to £80,000, who have opted to continue receiving Child Benefit, HICBC will be charged at 1% for every £200 of income that exceeds £60,000. For individuals with income above £80,000, HICBC will be equal to the Child Benefit payment received. The actual amount of Child Benefit payable is however to remain unchanged. 
 
The government’s objective with this policy change is to supporting more parents with the costs of raising a child. 
 
If you already claim or are considering opting into receiving Child Benefit, you should be aware of HICBC and the threshold changes. The following explains more about this benefit and how to register. 
 
 
 
What is Child Benefit? 
 
You are eligible to claim Child Benefit if you are responsible for a child who is under 16 years old, or under 20 years old if still in education or training. 
 
Child Benefit is paid at a weekly rate of £25.60 for the 1st child and £16.95 for each additional child. Child Benefit is however registered to an individual not a couple. This is important to note with calculating potential HICBC. 
 
How Can I Calculated What the HICBC Will Be? 
 
You can use the Child Benefit tax calculator on GOV.UK website to get an estimate of whether your adjusted net income affects your tax position. Adjusted net income includes your salary, taxable benefits in kind ie company car plus other income. It does however exclude pension contributions and payments to charities. 
 
You can choose to opt out or restart your Child Benefit payments at any time. 
If your adjusted net income goes below the £60,000 threshold and you no longer need to complete a Self Assessment tax return, you must tell HMRC. 
 
What If I Have Not Claimed Child Benefit Before or Want to Restart? 
 
If you wish to claim Child Benefit this can be done in the HMRC app or online. Child Benefit will be automatically backdated 3 months, or to the date of birth of the child whichever is later. For new Child Benefit claims made from 6 April 2024 to 7 July 2024 payments will be backdated but will only be subject to HICBC in 2024/25 tax year, if income is above the new £60,000 threshold.  
 
For example, a new claim made on 15 June 2024, will result in benefit payments backdated to 15 March 2024. Any HICBC due however only impact the 2024/25 tax year. A self assessment tax return 2024/25 will however need to be filed by 31 January2025. 
 
 
 
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