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If you have withdrawn from Child Benefit in the past, you can apply again from April 6, 2024.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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