The changes to the High Income Child Benefit Charge (HICBC), introduced in the Spring Budget, came into effect on 6 April 2024. The income threshold for the HICBC has been raised from £50,000 to £60,000.

Now, the HICBC is charged at 1% of the total Child Benefit award for every £200 (previously £100 in 2023-24) of income for the highest earner in a household earning between £60,000 and £80,000 (previously £50,000 to £60,000 in 2023-24). For those with incomes over £80,000 (previously £60,000 in 2023-24), the charge will equal the total Child Benefit received, effectively nullifying the financial benefit of receiving Child Benefit.

This increase in the HICBC threshold is anticipated to positively impact around 485,000 families. Moving forward, the government plans to administer the HICBC on a household basis rather than an individual basis, but this change is expected to take until at least April 2026 to implement. This timeline may be affected by the upcoming general election.

For new Child Benefit claims made after 6 April 2024, any backdated payments will be treated as though the entitlement occurred in the 2024-25 tax year, provided that backdating would otherwise result in a HICBC liability in the 2023-24 tax year.

If the HICBC applies to you or your partner, it is usually beneficial to continue claiming Child Benefit. This can help protect certain benefits and ensure your child receives a National Insurance number. However, you have the option to either continue receiving Child Benefit and pay the tax charge, or stop receiving Child Benefit to avoid the charge.

Business Asset Rollover Relief, commonly known as CGT Rollover Relief, offers a valuable opportunity for taxpayers to defer Capital Gains Tax (CGT) on gains from selling or disposing of certain business assets. By reinvesting the proceeds into new business assets, taxpayers can postpone the CGT liability. The gain from the old asset is effectively transferred into the cost of the new asset, deferring the tax until the new asset is eventually sold.

If only a portion of the proceeds from the sale is reinvested, a partial rollover claim is possible. Additionally, provisional rollover relief can be claimed if new assets are expected to be purchased but have not yet been acquired when filing returns with HMRC. Interestingly, taxpayers can also claim rollover relief when using the proceeds to improve existing assets. The extent of rollover relief depends on the total amount reinvested in new assets.

To qualify for this relief, several conditions must be met. New assets must be purchased within three years of selling or disposing of the old asset (or up to one year before the sale). In some cases, HMRC may extend these time limits. Both the old and new assets must be used in the taxpayer’s business, and the business must be actively trading when the old assets are sold and the new assets are purchased. Claims for relief must be made within four years from the end of the tax year in which the new asset was purchased (or the old one was sold, if later).

The Annual Tax Summary, provided by HMRC, offers a detailed overview of the taxes you’ve paid and how these funds are utilized by the government.

Here’s what the Annual Tax Summary includes:

Your Taxable Income: A record of all taxable income that HMRC was aware of at the time of preparation.

Tax Rates and Contributions: The rates applied to calculate your Income Tax and National Insurance contributions.

Government Spending Breakdown: An itemized account of how the UK government allocates the taxes collected, enhancing transparency in government spending.

It’s important to note that the Annual Tax Summary is purely informational. Neither taxpayers nor their agents need to take any action based on its content. You can access your summary online through the Government Gateway.

There are a few exceptions to accessing your Annual Tax Summary. You won’t be able to view it if you haven’t paid any income tax or if there is pending information. Additionally, the summary might differ from other HMRC tax calculations due to changes in your circumstances or incomplete income details.

Hey there, parents! With Easter just around the corner, it’s time to start planning for the school holidays. And guess what? HMRC wants to give you a friendly reminder: you might be eligible for Tax-Free Childcare (TFC) to ease the burden of childcare costs during this time.

So, what exactly is the TFC scheme? Well, it’s a lifeline for parents with kiddos up to 11 years old (or 17 for those with special needs). Basically, it’s designed to lend a helping hand to working families when it comes to covering childcare expenses. And the good news? There’s a whole bunch of registered childcare providers signed up for this across the UK, from childminders to breakfast clubs and after-school programs.

Here’s how it works: you can stash away money into your TFC account regularly, building up your allowance to use when the school gates close for the holidays. And here’s the cherry on top: for every £8 you put in, the government adds an extra £2. That means a maximum annual saving of £2,000 per child (or £4,000 for kiddos with disabilities until they turn 17) on childcare costs. Sweet deal, right?

Now, who can get in on this scheme? Well, pretty much any parent who meets the criteria, whether you’re self-employed, earning minimum wage, or even on sick leave or parental leave. You just need to clock in at least 16 hours of work per week and earn the National Minimum Wage or Living Wage. The only catch is, if either parent pulls in over £100,000 a year, then sorry folks, you’re out of luck.

So, what’s the bottom line? HMRC’s Director General for Customer Services puts it best: “Springtime is a good opportunity to take a fresh look at family finances.” And he’s right! A quick visit to GOV.UK and a search for ‘Tax-Free Childcare’ could mean big savings for your family. So why wait? Hop to it and open your account today!