HMRC has urged Brits to check whether they’re eligible for a ‘cash boost’ following reform to a cash benefit that is worth at least £1,331 a year. Even if you’re a high earner, you may still be approved for the weekly payments
HMRC has warned that thousands of Brits could be missing out on a ‘cash boost’ following a major shakeup. It comes after the government increased the High Income Child Benefit Charge (HICBC) from £50,000 to £60,000 last year.
Child Benefit helps cover the cost of those raising children under the age of 16, or under 20 if they stay in approved education or training. As per the Express, you can claim Child Benefit 48 hours after you’ve registered the birth of your child, or once a child comes to live with you and it can be backdated for up to three months.
With the cash benefit slated to increase from next month, now is the perfect time to check whether you’re eligible for the weekly payments. Even if you or your partner is a high earner – you may still fit the criteria.
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How much will I get in Child Benefit?
There are two Child Benefit rates: one for the eldest or only child (£25.60 per week) and one for any additional children (£16.95 per child, per week). This is slated to increase by 1.7 per cent from April 6 to £26.05 and £17.25, respectively. After this, eligible parents with one child will receive £1,354.60 per year, while parents with two children will receive £2,251.60 per year.
“If a family splits up, you get £25.60 a week for the eldest child,” explains GOV.UK. “If you have two children and one lives with you and the other lives with someone else (for example, your ex-partner), you’ll each get £25.60 a week. If you both claim for the same child, only one of you will get Child Benefit for them. If you both claim for the same child, only one of you will get Child Benefit for them.”
For families that join together, you can claim £25.60 for the eldest child in the household and £16.95 for any younger kids. You and your partner can claim for different children but if you live together, you can’t both claim for the higher rate.
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I earn over £60,000 – is it still worth claiming Child Benefit?
If your individual income is over the threshold (over £60,000 for the tax year 2024 to 2025 or over £50,000 for tax years up to and including the tax year 2023 to 2024) you will be hit with the HICBC. This is based on your ‘adjusted net income’, aka the total taxable income you earn before any allowances and excluding things like Gift Aid. “Your total taxable income includes interest from savings and dividends,” the government states.
For example, if you earned a salary of £65,000 in the 2024-2025 tax year, and have one child, you’ll receive £1,331.20 in Child Benefit but will need to pay an estimated tax charge of £332. The closer to the £80,000 cap you receive -the more your tax bill will counter the Child Benefit. For example, an individual on £79,000 a year in the 2024-2025 tax year will receive £1,331.20 in Child Benefit but will have an estimated tax charge of £1,264.00.
“If your adjusted net income is over the threshold and so is your partner’s, then whoever has the higher income is responsible for paying the tax charge,” added GOV.UK. “‘Partner’ means someone you’re not permanently separated from who you’re married to, in a civil partnership with or living with as if you were.”
You can use the government’s calculator to work out exactly how much tax you’ll be charged here. If you want to opt out of getting Child Benefit payments, you should still fill in the government form and state you don’t want to get payments. This will help ensure you get National Insurance credits, which count towards your State Pension, and means your child will get a National Insurance number without them having to apply for one.
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