Taxpayers who have previously missed out on Child Benefit due to earnings in excess of £60,000 may now be able to benefit from the claim.
As of April 6th, the starting threshold for the high-income child benefit charge (HICBC) has been raised to £60,000 (previously £50,000). As a result of these changes, households in which the highest earner has a total income of no more than £80,000 (previously £60,000), can retain some of the Child Benefit payments.
There is a 1% charge for every £200 of income exceeding £60,000, and if income surpasses £80,000, the charge equals the child benefit payment amount. If any new claimants wish to benefit from a full years claim, it’s crucial to remember that the deadline for opting back into child benefit is July 6th 2024. Claims can be made after this point but as it can only be backdated by three months, later claims will not be paid for the full year.
Child benefit rates have increased to £25.60 for the eldest child and £16.95 for other children. Families with one child can now receive up to £1,331 annually, an increase of £83.20, and up to £881 per additional child, an increase of £54.60 annually.
HMRC form, Restart child benefit payments
For advice, please contact Sarah Whalley, Tax Manager at Langtons
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