{"id":1501,"date":"2024-03-21T00:00:00","date_gmt":"2024-03-21T00:00:00","guid":{"rendered":"http:\/\/taxbak.co.uk\/index.php\/2024\/03\/21\/child-benefit-claw-backs\/"},"modified":"2024-03-21T00:00:00","modified_gmt":"2024-03-21T00:00:00","slug":"child-benefit-claw-backs","status":"publish","type":"post","link":"http:\/\/taxbak.co.uk\/index.php\/2024\/03\/21\/child-benefit-claw-backs\/","title":{"rendered":"Child Benefit claw-backs"},"content":{"rendered":"<p>One of the more impactful changes in the recent budget was the easing of the High Income Child Benefit Charge. Up to 5 April 2024, this has been recovering Child Benefits received by parents if the total income of one or more parent exceeded &pound;50,000.<\/p>\n<p>Basically, parents with income between &pound;50,000 to &pound;60,000 have had to repay all or part of their Child Benefits to HMRC as part of their self-assessment return.<\/p>\n<p>Unfortunately, the following change will not apply to the present 2023-24 tax year or earlier years.<\/p>\n<p>But from 6 April 2024, the lower limit is extended to &pound;60,000 and the upper limit to &pound;80,000. Accordingly, if the highest earner has income in excess of &pound;60,000, for every &pound;200 their income exceeds &pound;60,000 they will have to repay 1% of the Child Benefits received, and when their income exceeds &pound;80,000, effectively all Child Benefits received will have to be repaid.<\/p>\n<p>The mechanism that HMRC use to facilitate this recovery is called the High Income Child Benefit Charge (HICBC).<\/p>\n<p>But what to do if you have been required to register for self-assessment for 2023-24 or previous years and the highest parental income for 2024-25 will be higher than the old &pound;50,000 limit but lower than the &pound;60,000 or &pound;80,000 new limits?<\/p>\n<p>Consider the following options:<\/p>\n<ul>\n<li>If you have previously cancelled your Child Benefits, as the HICBC charge would have recovered any benefits received. Consider re-registering for Child Benefits if the income of the highest earning parent is under &pound;80,000.<\/li>\n<li>If you registered for self-assessment for 2023-24 or earlier years affected by the HICBC, and the income of the highest earning parent is now under the &pound;60,000 lower limit, and as long as you are not required to submit a self-assessment return for any other reason, then you could apply to HMRC to withdrawn from self-assessment and the obligation to submit a formal tax return each year.<\/li>\n<\/ul>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>One of the more impactful changes in the recent budget was the easing of the High Income Child Benefit Charge. Up to 5 April 2024, this has been recovering Child Benefits received by parents if the total income of one or more parent exceeded &pound;50,000. Basically, parents with income between &pound;50,000 to &pound;60,000 have had [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1501","post","type-post","status-publish","format-standard","hentry","category-uncategorized","blog-left-layout","blog-style-postblock","","blog-alt-odd"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=1501"}],"version-history":[{"count":0,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1501\/revisions"}],"wp:attachment":[{"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=1501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=1501"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/taxbak.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=1501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}