McDade Roberts Accountants, serve Preston, Longridge and the North West businesses and also individuals with their financial affairs including their tax situation. A question we have been asked recently by our clients is; how will the latest child benefit charge changes announced by HMRC impact them?
Read below to find out more.
Spring Budget Child Benefit Charge Changes April 2024
High Income Child Benefit Charge changes from April 2024 were announced in the Spring Budget 2024.
The threshold for repayment of Child Benefit received will be increased from £50,000 to £60,000 for the 2024/25 tax year, with clawback also expanded from £10,000 to £20,000 meaning that full repayment via tax charge will only impact households in which at least one person is earning £80,000 or more. For those earning between £60,000- £80,000 it will be a partial clawback.
For some the changes may mean that individuals may now want to consider restarting child benefit payments, if previously cancelled based on the old rates. To do so you can either fill out a form on the gov.uk website if you have a personal tax account, https://www.gov.uk/child-benefit-tax-charge/restart-child-benefit or alternatively you can contact the Child Benefit Office on 0300 200 3100.
For others no longer having to repay, there may be the opportunity to come out of Self-Assessment.
Looking further ahead to April 2026 there may be further reform to look at household income as opposed to the highest earner and we will continue to update as we are provided more information on this.
Further Spring Budget 2024 information is available on our website here: https://www.mcdaderoberts.co.uk/resources/downloads/spring-budget-2024
Need More Help?
At McDade Roberts Accountants, we specialize in assisting companies and individuals in navigating their financial and regulatory obligations. From tax planning to compliance, our experienced team is dedicated to helping you thrive. Contact us today to explore how we can support you.