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In the 2024 Spring Budget the Chancellor announced changes to the High Income Child Benefit Charge (“HICBC”) from April 2024.

The threshold, that this charge applies to, was raised from £50,000 to £60,000 and the taper will apply from £60,000 to £80,000 (this has been broadened from a £10,000 band to a £20,000 band).

Going forward the Government’s intention is to reform HICBC with the creation of a household-based system from April 2026.  A consultation will take place on the rules for allowing HMRC to collect details of household income.

Weekly Child Benefit Rates for 24/25 are:

£25.60 for the first child

£16.95 for each additional child

How to opt back in to receive Child Benefit payments if you’ve opted out

If you’ve previously registered for Child Benefit but opted out of receiving payments to avoid the high income charge, you can choose to opt back in once the thresholds are increased from 6 April.

You can only backdate claims up to three months so don’t delay re-registering.

There are two ways to do this:

1. Fill in the online form on Gov.uk. You’ll need your ‘Government Gateway’ user ID and password to do this. If you don’t already have this, you can create it when you fill in the form. 
2. Contact the Child Benefit office directly and ask them to restart your payments.

After the Child Benefit office gets your request, it can take up to 21 days before you get your first payment.

Impact on tax codes

Another complication , that we are not sure how HMRC are going to unravel, is that HMRC have already issued tax code notices for 24/25 which may include adjustments for the HICBC due for payments in that year based on the old rules.  These will need adjusting.  If this applies to you we suggest monitoring your tax code and if it has not been amended by the start of the year contacting HMRC and asking them to make the necessary adjustments.  If you are our client please let us know if this applies to you and we can contact HMRC to amend this on your behalf.

You can read more about HICBC here:

https://www.gov.uk/government/publications/changes-to-the-high-income-child-benefit-charge/information-on-changes-to-the-high-incomechild-benefit-charge

https://www.moneysavingexpert.com/news/2024/03/spring-budget-child-benefit-martin-lewis-mse/