Kristina Roberts
UK residents earning less than £80,000 annually are being encouraged to check their eligibility for a valuable benefit provided by His Majesty’s Revenue and Customs (HMRC). Known as Child Benefit, this financial support is designed to assist parents or guardians with the expenses of raising children and could be worth up to £3,094 per year.
What is Child Benefit?
Child Benefit is available to parents or carers of children under 16 years old or under 20 if they remain in full-time education or training. In addition to financial assistance, claimants also gain:
- National Insurance credits to help secure their State Pension.
- A National Insurance number for their child when they reach the appropriate age.
For the 2024-2025 tax year, the weekly payment rates are:
- £25.60 per week (£1,331.20 annually) for the first child.
- £16.95 per week (£881.40 annually) for each additional child.
This means that families with two children could receive £2,212.60 annually, while those with three children could benefit from £3,094.
Income Limits and High-Income Child Benefit Charge
As of April 6, 2024, the maximum income threshold for receiving any Child Benefit is £80,000. However, households where one earner makes more than £60,000 may be subject to the High Income Child Benefit Charge (HICBC).
Under this rule:
- Households earning between £50,000 and £60,000 may still receive the benefit but will have to repay a portion through the HICBC.
- Those earning above £60,000 may receive the benefit but will need to repay an equivalent amount through their self-assessment tax return.
Who Can Claim?
Child Benefit can only be claimed by one parent or carer per household. If you or your partner earn £60,000 or less annually, you can claim the full amount, provided:
- The child resides with you.
- You contribute the equivalent of the benefit payment towards their care.
How to Apply
To claim Child Benefit, eligible individuals should apply directly to HMRC. Applications are typically processed promptly, and payments are made every four weeks.
Even higher earners are advised to apply, as receiving the benefit ensures they are credited with National Insurance contributions. This is particularly important for those taking time off work to raise children, as it safeguards their eligibility for the State Pension in later life.
Don’t Miss Out
HMRC is urging individuals to review their eligibility and ensure they are not missing out on this valuable benefit. Parents and carers who meet the criteria are encouraged to act quickly to secure their entitlement, which can significantly alleviate the financial burden of childcare.
For more details and to apply for Child Benefit, visit the official HMRC website or contact their support line.
