NEW Guides & Publications17 Oct 2024
Alliotts Focus – Winter 2024
In this edition of Alliotts Focus we look at; Self-assessment registration, landlord legislation changes, dividend taxation, and voluntary business liquidations
Articles
Taxpayers will benefit from the changes made to the high income child benefit charge thanks to all tax measures from the March 2024 Budget being enacted before parliament was prorogued.
Changes to benefit charge
For 2024/25, the high income child benefit charge (HICBC) does not apply until income exceeds £60,000, a £10,000 increase from the previous threshold of £50,000. This means:
Despite the changes, the HICBC can still mean a high effective marginal rate of tax.
Calculating income
A recently lost appeal to HMRC shows the importance of correctly calculating income for threshold purposes.
The taxpayer’s basic salary did not exceed the former HICBC income threshold of £50,000, but for the seven years under investigation he had overlooked the taxable benefit from having a company car. This was sufficient to take income over £50,000, so the charge was payable.
Taxpayers therefore need to be particularly careful when calculating income:
The gross amount of pension contributions and gift aid donations reduce the income figure, providing a useful tax planning opportunity where income is between £60,000 and £80,000.
Don’t forget to extend child benefit claims for 16- to 19-year-olds who continue in approved education or training. This can be done online or using the HMRC app.
THE AUTHOR
Partner
More & Other Musings
View all related contentNEW Guides & Publications17 Oct 2024
In this edition of Alliotts Focus we look at; Self-assessment registration, landlord legislation changes, dividend taxation, and voluntary business liquidations
NEW Articles17 Oct 2024
Finance for independent films in the UK has received a huge boost courtesy of the new enhanced Audio Visual Expenditure Credit (AVEC) known as Independent Film Tax Credit (IFTC)
NEW Articles16 Oct 2024
Tax rises are a dead cert, we all know that, but what else can we look forward to?
NEW Articles11 Oct 2024
Rental property has been set a government target to meet an energy performance certificate (EPC) rating of C by 2030. Although new funding in support of this initiative has been announced, the grants will not help all landlords.
NEW Articles11 Oct 2024
With a ‘black hole’ of £22 billion to fill, there are plenty of groups giving Rachel Reeves advice.