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If you are self-employed or a company director and have children under the age of 16, you may be eligible for Child Benefits, if your total earnings for the 2023/24 tax year are below £60,000.
Your eligibility can also be extended for children under the age of 20 who currently undergo an approved educational course or training.
There’s no limit to how many children you can claim for.
You'll be liable for annual tax payments of 1% for every £100 of income that is over £50,000.
The tax charges will apply to the higher earner between both partners and will increase gradually if your annual taxable income falls between £50,000 and £60,000.
The amount you pay can be reduced if you've declared any trading losses on your annual Self-Assessment tax return or if you are entitled to certain tax reliefs.
2022 to 2023
Eldest or only child: £21
Other children: £14.40
2023 to 2024
Eldest or only child: £24
Other children: £15.90
To give a general idea of what you can expect, here are some estimated calculations we've prepared.
For the tax return for the year ended 5th April 2023
One Child: £21.80 x 52 = £1,133.60
Two Children: £21.80 + £14.45 x 52 = £1,885.00
Three Children: £21.80 + (2x £14.45) x 52 = £2,636.40
Four Children: £21.80 + (3x £14.45) x 52 = £3,387.80
Five Children: £21.80 + (4x £14.45) x 52 = £4,139.20
For the tax return for the year ended 5th April 2024
One Child: £24.00 x 52 = £1,248
Two Children: £24.00 + £15.90 x 52 = £2,074.80
Three Children: £24.00 + (2x £15.90) x 52 = £2,901.60
Four Children: £24.00 + (3x £15.90) x 52 = £3,728.40
Five Children: £24.00 + (4x £15.90) x 52 = £4,555.20
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