Changes in Budget (NI & HICBC)
- Agnieszka Ordakowska
- Mar 7, 2024
- 1 min read
6th of March 2024, Rt Hon Jeremy Hunt MP, made amendment to the Budget relating to National Insurance and
Compulsory Income Child Benefit (HICBC) payment, which will apply from 6 April 2024.
Insurance Contributions (National Insurance "NI")
If you are an employee, the main rate of your insurance contribution will be reduced from 10% to 8%.
However, if you are Self-Employed, your main rate (NIC Class 4) will be reduced from 9% to 6%.
HICBC - High Income Child Benefit Charge
The income threshold for HICBC tax is increased from £50,000 to £60,000.
Additionally, the HICBC tax rate changes from 1% for every additional £100 above the threshold to 1% for every £200.
This means you can continue to claim Child Benefit until you earn £80,000 or more on your own or with your partner/spouse.
If you have withdrawn from Child Benefit in the past, you can apply again from April 6, 2024.
This can be done via HMRC applications or on-line at gov.uk.
Child Benefit is automatically backdated for 3 months, or to the date of birth of the child if later.
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The recent updates to National Insurance and HICBC bring significant relief for both employees and the self-employed, with reduced contribution rates and a higher income threshold for Child Benefit eligibility. These changes offer more financial flexibility for families, especially those navigating academic or career pressures. For those pursuing advanced studies, this could be the perfect time to seek PhD dissertation help and stay focused on research while managing life’s demands more smoothly.