by Mel Hackney

The Child Benefit clawback rules have changed from 6 April 2024. Broadly, up until (and including) this date, if one partner in the household had income more than £50,000, Child Benefit was restricted (and tapered away altogether at £60,000). From 2024/25, this level has been increased to £60,000, and tapered to the higher level of £80,000.

In addition, the government plans to administer the HICBC on a household rather than individual basis by April 2026, with a consultation in due course.

This may pave the way for some tax planning, particularly if you or your partner have income from a company. The effective tax rate when paying Child Benefit is extraordinarily high, so if you can avoid hitting that repayment window, particularly now the income level has increased, it’s well worth considering.