New Child Benefit tax rates for self-employed and company directors

Clever Accounts
March 20, 2024

New Child Benefit tax rates from 6th April 2024

On the 6th March 2024, the Chancellor Jeremy Hunt set out the Government’s economic plan for 2024. As part of the changes introduced, the child benefit threshold will raise from £50,000 to £60,000, with the top taper of £80,000, saving most an estimated £1,300 from April 2024.

Further plans were announced to make it fairer and base it on household income from two parents, rather than cases where one parent earns in excess of £50,000, and the other earns nothing or very little, compared to two parents earning £49,000 each. These are not expected to be introduced until April 2026, when they will look at collecting the High Income Child Benefit Charge (HICBC) through tax codes, rather than through Self Assessment Tax Return submissions.

If you have previously opted out as your income exceeded £60,000, you can restart the child benefit payments by completing a form online or by contacting the child benefit office, if your income is below £80,000. Once submitted, the Child Benefit Office have said it will take up to 21 days before you receive your first payment.

If you have children under the age of 16, you may be eligible for Child Benefits, if your total earnings for the 2024/25 tax year are below £80,000.

Your eligibility can also be extended for children under the age of 20 who currently undergo an approved educational course or training, and there’s no limit to how many children you can claim for.

The High Income Child Benefit Charge (HICBC)

For the Tax Year commencing 6th April 2024, ended 5th April 2025, the higher earner between both partners will be liable for annual tax payments of 1% for every £200 of income that is over £60,000, up to £80,000. This has decreased from 1% for every £100 of income, between £50,000 and £60,000, up to 5th April 2024.

As an example, for the tax year ended 5th April 2025, if you earned £70,000 and received child benefit of £2,212.60 for two children, you will be required to repay 50% of this, £1,106.30. This will be due by 31st January 2026, on your tax return for the year ended 5th April 2025.

The amount you pay can be reduced if you've declared any trading losses, gift aid charity donations or pension contributions, on your annual Self-Assessment tax return or if you are entitled to other tax reliefs.

Child Benefit rates per week

Forthe tax return for the year ended 5th April 2025

Eldest or only child: £25.60

Other children: £16.95


Forthe tax return for the year ended 5th April 2024

Eldest or only child: £24

Other children: £15.90


Example calculations.

To give a general idea of whatyou can expect to receive, here are some estimated calculations we've prepared.

For the tax return for the year ended5th April 2025

One Child: £25.60 x52 = £1,331.20

Two Children: £25.60+ £16.95 x 52 = £2,212.60

Three Children: £25.60+ (2x £16.95) x 52 = £3,094.00

Four Children: £25.60+ (3x £16.95) x 52 = £3,975.40

Five Children: £25.60+ (4x £16.95) x 52 = £4,856.80


Forthe tax return for the year ended 5th April 2024

One Child: £24.00 x52 = £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 ‍


Please note, contributions start from when the child isborn and end on the  31st August, on or after your child’s 16th birthday if they leaveeducation or training. It continues if they stay in approved education ortraining, but you must tell HM Revenue and Customs (HMRC).

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