Geraldene Dobson’s Post

News on High Income Child Benefit Charge (HIBC) Starting from April 2024, the earnings threshold increases to £60,000, and from April 2026 the charge will be based on household income, not just individual earnings. The current system has faced backlash for its unfair application to the higher earner in a household, the 2026 change levels the playing field by considering household income but this poses a challenge for HMRC data collection, demanding more resources from an already stretched HMRC. https://lnkd.in/eePnpTg4 #BudgetChanges #HIBC #Tax #HMRC

Last week's Budget saw the Chancellor announce an increase the high income child benefit threshold (HICBC). ICAS - The Professional Body of CAs called on the Chancellor to revisit the HICBC threshold, so we welcome the April 2024 changes, but we also recognise the need for wider reform. That said, it's important that any such reform does not jeopardise the importance of independent taxation and we are mindful of the challenges that household income brought to the Tax Credits system, especially where there is a change of income or circumstances. Whilst we await the proposed consultation on HICBC in the longer term, this article summarises the key issues that our members will be discussing with their clients who may be affected.

The High Income Child Benefit Charge (HICBC) came into force January 2013 and has applied to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. It was announced as part of the Spring Budget measures that the income threshold at which HICBC starts to be charged will be increased from £50,000 to £60,000 effective from April 2024. #SpringBudget2024 #HighIncomeChildBenefitCharge

It was announced as part of the Autumn Budget measures that the government will not now proceed with the reform to base the High Income Child Benefit Charge (HICBC) on household incomes. #HICBC #ChildBenefits #ParentsAndTax

It was announced as part of the Autumn Budget measures that the government will not now proceed with the reform to base the High Income Child Benefit Charge (HICBC) on household incomes. #HICBC #ChildBenefits #ParentsAndTax

Another announcement from last week's budget was regarding the High Income Child Benefit tax charge. 👶 ❗ This is something that only affects a handful of our clients, but if you fall into the affected group then it's important to be aware of it. ❓ If you or your partner receive child benefit payments and your income is above a certain threshold, you'll be liable to pay additional tax at the end of the tax year. 💵 The current income threshold is £50,000. If only one partner earns above £50k then they are solely responsible for paying the charge, even if it is the other partner that actually receives the child benefit. The children do not need to be your own for you to be liable to pay. The good news is that the threshold is increasing to £60,000 for 2024/25. 🙌 💹 Particularly for individuals who get most of their income outside of PAYE, or from multiple sources, it's worth speaking to your accountant about what your projected income is for the tax year and whether it makes sense to continue claiming child benefit, particularly if your income is consistently above the threshold. 📆 It was also announced that there are plans to drastically reform the system from April 2026, with it eventually moving to a household income test for eligibility, so we'll see further changes in the coming years.

It was announced as part of the Autumn Budget measures that the government will not now proceed with the reform to base the High Income Child Benefit Charge (HICBC) on household incomes. #HICBC #ChildBenefits #ParentsAndTax

It was announced as part of the Autumn Budget measures that the government will not now proceed with the reform to base the High Income Child Benefit Charge (HICBC) on household incomes. #HICBC #ChildBenefits #ParentsAndTax

Did you know that child benefit income might be subject to tax depending on your earnings? Find out if you need to pay tax on your child benefit and how it could affect your family budget. Stay informed and read our article - https://lnkd.in/e3GA_RAm

Is the Chancellor about to make changes to the High Income Child Benefit Charge in next week’s budget? We think he should because, changes are needed to help make sure people claim what's theirs. Find out why in our latest blog 👇