Latest news with #HighIncomeChildBenefitCharge
Daily Mirror
4 days ago
- Business
- Daily Mirror
Child Benefit payments will stop for thousands of parents unless they act now
You can claim Child Benefit if you're responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training Thousands of parents will have their Child Benefit payments stopped next month unless they update their claim. Child Benefit is worth £26.05 a week for your first child, then £17.25 for any additional child. You can claim Child Benefit if you're responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training. If they are continuing with education or training after the age of 16, then you need to notify HMRC and update your benefit claim. This is because your Child Benefit will automatically stop on August 31 on or after your child's 16th birthday. You also need to let HMRC know if your child leaves their approved education or training before the course is complete. Approved education or training can include A-Levels, NVQs or even home education, but it does not include university or BTEC qualifications. Child Benefit is claimed by more than seven million families. It is paid every four weeks, on a Monday or Tuesday, by HMRC. In order to be eligible for Child Benefit, your child normally has to live with you, or you pay at least the same amount as Child Benefit toward looking after them. You can claim Child Benefit if you fostered a child, as long as the local council is not paying anything towards their accommodation or maintenance, or if you adopted your child. You may also be entitled if you're looking after a child for a friend or relative. There is no limit for how many children you can claim Child Benefit for, but if two people look after a child, only one person can claim Child Benefit. If you, or your partner, are on a high income, then you may have to pay back some of your Child Benefit. If either you earn over £60,000, you have to pay back 1% of your Child Benefit for every £200 you earn over £60,000. This is known as the High Income Child Benefit Charge. Once you earn over £80,000, you pay back 100% of your Child Benefit. The upcoming bank holiday on Monday, August 25 means some Child Benefit payments will be issued on a different day. If you're due a Child Benefit payment on Monday, August 25, you'll receive your money on Friday, August 22 instead. The amount you get paid will not change. If you live in Scotland, there is another bank holiday on Monday, August 4. Those who are due a Child Benefit payment on this date will be paid later, on Tuesday, August 5, instead.
Daily Mirror
05-07-2025
- Business
- Daily Mirror
Brits on less than £80,000 a year could owed cash from HMRC
HMRC has issued a warning to some taxpayers who may be missing out on a certain benefit. HM Revenue and Customs (HMRC) is encouraging those earning less than £80,000 per year to check if they are missing out on cash benefits. In particular, many could be failing to claim Child Benefit. In a recent update, HMRC's official X account said: "If you earn under 80k and haven't claimed Child Benefit yet, it could be financially worth your while. You or your partner can now earn up to £60k before you start paying the High Income Child Benefit Charge." As reported by the Liverpool Echo, families are being urged by the tax authority to submit their claims either online or through the HMRC mobile app. The purpose of Child Benefit is to assist with the costs of raising children, open to all parents and caregivers in charge of minors. This scheme, run by HMRC, provides regular payments for each child until they turn 16, or up to 20 if they remain in full-time education or approved training. Importantly, claiming Child Benefit can also add to one's National Insurance record, aiding future State Pension eligibility. At present, families receive £26.05 weekly for the first child, an annual contribution of £1,354.60, with further children adding £17.25 to the weekly budget. As such, a family with two kids would see £2,251.60 a year, and a three-child household £3,148.60. Under the High Income Child Benefit Charge regulations, benefits progressively diminish when an individual's income reaches £60,000 and are completely withdrawn for those earning £80,000 or more. If you or your partner earn £60,000 or less per annum, you're eligible to claim the full Child Benefit amount, provided the child lives with you, or if you contribute a similar weekly sum towards their upkeep. Only one parent or guardian can make a claim for each child. You're qualified to claim Child Benefit 48 hours after registering your child's birth, or once a child starts residing with you, and it can be backdated for up to three months. You can apply online, by post, or via phone, and you'll need the child's birth or adoption certificate along with your bank details for payments. You'll also need to provide your National Insurance (NI) number, and your partner's NI number if applicable. The Child Benefit threshold is determined based on one parent's earnings, not the combined household income.
Daily Record
01-07-2025
- Business
- Daily Record
Child Benefit payment warning to parents ahead of important deadline next month
Some parents will need to update their claim if their child is continuing in full-time education. HM Revenue and Customs (HMRC) is sending reminder letter to parents of teenagers aged between 16 and 19-years-old between now and July, urging them to extend their Child Benefit claim before a crucial deadline next month, or payments will automatically stop. Payments will end on August 31, 2025 if the online account is not updated to extend the claim. Those who need to update it include parents with teenagers continuing their education or training after their Scottish Nationals. Parents can extend their claim quickly and easily via the HMRC app or online on The letters also contain a handy QR code which takes parents straight to the digital service on Child Benefit is worth £26.05 per week - or £1,354.60 a year - for the eldest or only child and £17.25 per week - or £897 a year - for each additional child. More than 870,000 parents extended their Child Benefit claim for their teen last year with the majority confirming online or via the HMRC app in minutes. Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'Child Benefit is an important boost to families. As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to or the HMRC app to confirm today.' Child Benefit can continue to be paid for children who are studying full time in approved non-advanced education, which includes: A levels or Scottish Highers International Baccalaureate home education - if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority T levels NVQs, up to level 3 Child Benefit will also continue for children studying on one of these unpaid approved training courses: Scotland: Employability Fund programme and No One Left Behind Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work If a child changes their mind about further education or training, parents can simply inform HMRC online or in the app and payments will be adjusted accordingly. If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families who fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be. From this summer, as part of the UK Government's Plan for Change, families will have the option to use a new digital service to pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax return. The new service will cut red tape for eligible employed parents who are liable to the High Income Child Benefit Charge but those who choose to pay the charge through their Self Assessment can continue to do so. Families who have previously opted out of Child Benefit payments can opt back in and restart their payments quickly and easily online or via the HMRC app. Teenagers turning 16 can take control of their Child Trust Fund savings account, which could be worth thousands of pounds, and can withdraw the money once they turn 18. Child Trust Funds were set up for every child born between 1 September 2002 and 2 January 2011. If teenagers or their parents and guardians know who their Child Trust Fund provider is, they can contact them directly. If they don't know where their account is, they can use the free online tool on to find out who their Child Trust Fund provider is. Scottish Child Payment Scottish Child Payment is a weekly payment of £27.15 for eligible families with children up to the age of 16 - the payment is worth £108.60 every month and is only available north of the border. Combined with Child Benefit payments from HMRC, parents could be due up to £212.80 each month in additional support. Child Benefit is a separate UK-wide payment, which is also issued every four weeks and amounts to £104.20 every payment period for the eldest or only child or £69.00 for every additional child. Parents, carers and guardians can get more information about financial help on the dedicated Children and Family section on here or by calling Social Security Scotland free on 0800 182 2222.
Daily Mirror
20-06-2025
- Business
- Daily Mirror
Child Benefit change coming this summer for thousands of families
You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead The way higher income families pay back part of their Child Benefit is changing this summer. Child Benefit is worth £26.05 a week for your first child, then £17.25 for any additional child. It is a payment that is given to someone who is responsible for bringing up a child - but if you earn over a certain amount, you have to pay back part of your Child Benefit. If you, or your partner, earn over £60,000, you have to pay back 1% of your Child Benefit for every £200 you earn over £60,000. Once you earn over £80,000, you pay all your Child Benefit back. This is known as the High Income Child Benefit Charge. You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead. HMRC will contact families when a new digital system goes live, which is expected to happen this summer. You will still be able to pay the High Income Child Benefit Charge through self-assessment if you want to. In the 2022/23 tax year, 440,000 individuals paid a total of £525million in High Income Child Benefit Charge. Crucially, the figures above count per person - so if you are in a couple, you could both earn £59,000 and not be subject to the charge. You can make a claim for Child Benefit without getting the payments, in order to get National Insurance credits which count toward your state pension, if you don't want to pay the charge. The High Income Child Benefit Charge was previously £50,000 a year before you start to pay it back, but this was raised to £60,000 for the current tax year. Child Benefit is claimed by more than seven million families. You can claim Child Benefit if you're responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training. This can include A-Levels, NVQs or even home education, but it does not include university or BTEC qualifications. The child normally has to live with you, or you pay at least the same amount as Child Benefit toward looking after them. You can claim Child Benefit if you fostered a child, as long as the local council is not paying anything towards their accommodation or maintenance, if you adopted your child. You may also be entitled if you're looking after a child for a friend or relative. There is no limit for how many children you can claim Child Benefit for, but if two people look after a child, only one person can claim Child Benefit. Child Benefit is paid every four weeks by HMRC on a Monday or Tuesday.
Yahoo
19-06-2025
- Business
- Yahoo
HMRC issues warning to parents that are 'missing out' on Child Benefit
HM Revenue and Customs (HMRC) has issued a warning to parents who might be "missing out" on Child Benefit payments. Child Benefit is a monthly payment for anyone with parental responsibilities for children under the age of 16 (or up to 20 in full-time education). Yet, parents that are higher earners may have decided to opt out of the benefit due to the High Income Child Benefit Charge, but changes from the last tax year mean the threshold for this has altered. Read more: HMRC urges young people looking for summer jobs to check essential details Following the 2023/24 tax year, the earning threshold before the charge applies has risen from £50,000 to £60,000 for 2024/25. Making the announcement on X, HMRC wrote: "Opted out of Child Benefit payments because of the High Income Child Benefit Charge? "The amount you or your partner can earn before paying the charge is now £60k, so you may be missing out on a cash boost." HMRC has previously stated the 2025/26 Child Benefit rates for a first-born or only child stand at £26.05. For additional children, it's £17.25 per child. If you (or your partner) earn £60,000 a year or under, you can claim the full entitlement of Child Benefit. This is only if the child you're applying for lives with you, or if you're paying at least the same weekly amount as the benefit towards looking after them. You can start a claim for Child Benefit 48 hours after your child's birth has been registered or if a child has come to live with you. However, you can also backdate the claim up to three months from the date you submit it. Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
