As a result of the changes to the High Income Child Benefit Charge (HICBC) announced in the Spring Budget, some individuals may need to review whether they should restart their Child Benefit claims from April 2024.
Previously, the HICBC affected anyone where they or their partner had adjusted net income in excess of £50,000 and they or their partner were in receipt of Child Benefit. But from 6 April 2024, this threshold has now been raised to £60,000 along with a change to the rate of clawback.
If either partner has adjusted net income above £60,000, the HICBC requires the highest earner in the relationship to repay any Child Benefit received in the tax year at the rate of 1% for every £200 of net income in excess of £60,000. This means that all the Child Benefit is repaid if the highest earner’s income is £80,000 or more.
However, previously the rate of clawback was 1% for every £100 of net income in excess of £50,000 which meant that all the Child Benefit was repaid if the highest earner’s income was only £60,000 or more.
As a result of these changes, many eligible parents may now need to consider if they should restart their Child Benefit claims if they had previously stopped them. If this applies to you, an online claim form can be submitted on HMRC’s website here.
