Child Benefit is a vital financial support offered to families in the UK, aimed at helping with the costs of raising children. Whether you’re a new parent or just want to ensure you’re taking full advantage of the benefits available, understanding Child Benefit is crucial. Here’s everything you need to know.
Who Can Claim Child Benefit?
You can claim Child Benefit if you’re responsible for a child under 16 years old, or under 20 if they are in approved education or training. The key points to consider include:
- Age Criteria: The child must be under 16 or under 20 if still in approved education or training.
- Responsibility: You must be responsible for the child to claim. This usually means the child lives with you or you’re paying for their upkeep.
- One Claimant Per Child: Only one person can claim Child Benefit for a child, so in cases of joint custody, the decision must be made as to who will claim.
How Much Can You Receive?
The current weekly Child Benefit rates are:
- £20.70 per week for the eldest or only child
- £13.70 per week for each additional child
Payments are typically made every four weeks, directly into your bank account.
The High-Income Child Benefit Charge
If you or your partner has an individual income of over £60,000, you may have to pay a tax charge called the High Income Child Benefit Charge (HICBC). This charge is designed to reduce or eliminate the financial benefit of receiving Child Benefit for higher earners.
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The Importance of National Insurance Credits
Even if you decide not to receive Child Benefit payments, it’s crucial to fill in the Child Benefit form. Doing so ensures that you receive National Insurance credits. These credits are particularly important if one partner is not working or earning below the threshold to pay National Insurance contributions. These credits can help protect your State Pension, preventing gaps in your National Insurance record.
How to Claim Child Benefit
To claim Child Benefit, you’ll need to complete the Child Benefit form, which can be found on the UK government’s website at www.gov.uk/child-benefit. The process is straightforward, but it’s essential to do so promptly, as claims can only be backdated by up to three months.
Additional Information
It’s worth noting that:
- Child’s National Insurance Number: When your child turns 16, they will automatically receive a National Insurance number. This will be sent to them if you’re claiming Child Benefit.
- Adopted or Foster Children: If you’re caring for an adopted or foster child, you may still be eligible to claim Child Benefit under the same conditions.
Child Benefit is a valuable resource for families, but understanding the nuances, particularly regarding the High Income Child Benefit Charge, is essential to making the most of it.
Ensure you fill out the necessary forms, even if you choose to opt out of receiving payments, to protect your future entitlements.
Need more help?
If you’r already a client of PPF but need more guidance, including how to manage the tax implications, Get in touch with the team
Or if you would like to enquire about becoming a client, head to our ‘Get Started’ page and complete our quick questionnaire.
