Parents nationwide may be eligible for additional financial assistance in raising their child or children
HM Revenue and Customs (HMRC) has sounded the alarm for parents nationwide who might be “missing out on cash”. The tax authority pointed out that those earning below £80,000 could benefit the most from Child Benefit.
HMRC noted that the threshold for the High Income Child Benefit Charge has risen to £60,000. This change allows more parents to continue receiving Child Benefit without incurring payment penalties.
In a statement, it declared: “Parents! If you earn under 80k, you could you be missing out on cash. The amount you or your partner can earn before you start paying the High Income Child Benefit Charge has increased to £60k.”
Understanding Child Benefit
Child Benefit is accessible to parents with children under the age of 16, or up to 20 if they are still in education or training, and there’s no limit to how many children can be included in the claim. Families receive £25.60 weekly for the first child and an extra £16.96 per week for each additional child, reports Lancs Live.
This amounts to an annual total of £1,331.20 for one child and £2,212.60 for two children. Recent data from HM Revenue and Customs reveal that six million families in the UK are beneficiaries of Child Benefit payments.
An additional perk is that it offers National Insurance Credits, which can potentially improve some parents’ State Pension prospects. Generally, at least 10 years of credits are needed to qualify for the State Pension, while a full State Pension typically requires 35 years of contributions.
This is particularly beneficial for parents not in paid work and those not receiving National Insurance (NI) credits from their employer.
Those who earn more than £60,000
However, high-income earners face a significant drawback with Child Benefit due to the high-income charge. If a parent or their partner’s income exceeds £60,000 per annum, they may be hit with an additional charge on their benefit.
This continues until a parent’s individual income surpasses £80,000, at which point the entire benefit amount must be repaid. This makes the benefit pointless unless you become unemployed and need it for the NI credits it offers.
To apply for Child Benefit, families will need:
- their National Insurance number and that of their partner, if applicable.
- their bank account details
- the child’s original birth or adoption certificate and passport or travel document, for children born outside the UK.
- their child’s birth or adoption certificate
You can file a claim for Child Benefit 48 hours after your child’s birth is registered or when the child moves in with you. Additionally, you can backdate your claim for up to three months.
Keep in mind that only one person can receive Child Benefit for a child. If both parents are involved, you’ll need to agree on who will get the payment. The person who claims will also receive National Insurance credits, which could be a factor in your decision.
To apply for Child Benefit, you can do so online at GOV.UK, where you’ll find a form to fill out. In some cases, you may need to print the completed form and send it to HMRC along with any necessary supporting documents.
