For instance, dual income families on £49,000 each (with a household income of £98,000) may not be liable to the HICBC, but a single parent earning over £50,000 could. The government recognises issues that have been raised around the unfairness in how the HICBC is currently charged on an individual basis. 170,000 families will be taken out of paying the tax charge. Overall, the government estimates almost half a million (485,000) hard-working families will gain an average of £1,260 towards the costs of raising their children in 2024/25. This means Child Benefit will not be withdrawn in full until individuals earn £80,000 or higher. In addition, the rate at which the HICBC is charged will also be halved from 1% of the Child Benefit payment for every additional £100 earnt above the threshold, to 1% for every £200. The government is also increasing the income threshold at which HICBC starts to be charged from £50,000 to £60,000 from April 2024. The typical teacher on £44,300 will be better off by over £1,270.A typical self-employed plumber on £34,361 will be better off by £846.A typical junior doctor on £65,000 will be better off by £1,508.A cleaner working night shifts on £21,058 will be better off by £340.The average police officer on £44,300 will be better off by £1,270.A senior nurse with five years experience on £42,618 will be better off by £1,202.An average full-time nurse on £38,900 will be better off by £1,053.A hard-working family with two earners on the average salary of £35,400 each will be better off by £1,826. Today’s tax cuts, combined with the tax cuts announced at the Autumn Statement 2023, mean: Combined with the abolition of the requirement to pay Class 2, this will save an average self-employed person on £28,000 £650 a year This means that from 6 April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%. The government is also cutting a further 2p from the main rate of self-employed National Insurance on top of the 1p cut announced at Autumn Statement and the abolition of Class 2. The government is cutting the main rate of employee National Insurance by 2p from 10% to 8% from 6 April 2024. The High Income Child Benefit Charge (HICBC) is a tax charge that applies to higher earners who receive Child Benefit, or whose partner receives it.īuilding on changes made at Autumn Statement the government has cut taxes again for 29 million working people. What is the High Income Child Benefit Charge (HICBC)? National Insurance is paid by people between age 16 and State Pension age who are either an employee earning more than £242 per week from one job or self-employed and making a profit of more than £12,570 a year. Spring Budget 2024 shows it is sticking with this economic plan. Because of the progress the government has made, the economy is beginning to turn a corner and the government has been able to afford tax cuts for workers as part of its plan to reward work and grow the economy.
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