Changes to the High-Income Child Benefit Charge
From 6 April 2024, the High-Income Child Benefit Charge threshold has increased from £50,000 to £60,000 per tax year. The charge is tapered so if your income is between £60,000 and £80,000, you will be charged 1% of your Child Benefit for every £200 of income above £60,000. If your income exceeds £80,000, all the Child Benefit payments for the tax year will be clawed back.
As a result of this change, you may wish to begin claiming Child Benefit if your income will be below £80,000 for the current tax year. This can be done online via HMRC’s website here: Child Benefit: Make a claim – GOV.UK (www.gov.uk)
If you had stopped claiming Child Benefit due to the lower threshold and now wish to restart claiming the payments this can be done here: High Income Child Benefit Charge: Restart your Child Benefit payments – GOV.UK (www.gov.uk)
If you have any follow up questions, please liaise with your usual O’Haras contact.