CHILD'S PAY
Are child benefit payments going up and how much more will I get?
MILLIONS of households in the UK receive benefits to help with the cost of living.
You can usually claim two different rates for child benefit depending on how many children you have.
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Most parents in the UK can claim child benefit but there are still certain eligibility rules.
You can claim if you're responsible for a child who is under 16 or under 20 and in approved education or training.
Only one person in the household can get child benefit, but there is no limit to how many children you can claim it for.
Here we explain everything you need to know about claiming child benefit.
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How much is child benefit?
There are two child benefit rates - one for the eldest child and another for each further child or children.
The current rate for your eldest or only child is £24 per week, which is £96 a month or £1,152 a year.
You can get £15.90 for every additional child, which equates to around £63.60 a month or £763 a year.
In April this year, child benefits will rise by 6.7%, based on inflation figures from September 2023.
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The new rate for your eldest or only child will be £25.60 per week. That's £102.40 a month or £1,229 a year.
You will be able to get £16.95 for every additional child, which works out to £67.80 a month and £814 per year.
Child benefit payments are likely to rise again April 2025 in line with inflation from September this year.
How do I get child benefit?
Child benefit is usually paid every four weeks on a Monday or Tuesday.
But you can have the money paid weekly if you’re a single parent or getting certain other benefits like Income Support.
You can get the money paid into any account, apart from a Nationwide cashbuilder account in someone else’s name.
You need to apply for child benefit which you can do
Only one person can get the benefit for the child or children though so you'll have to decide which parent will get it.
There are other benefits you might get on top of child benefit if you're on a low income, like the child element of Universal Credit.
Who is eligible to claim child benefit?
You will normally qualify for child benefit if you live in the UK and you're responsible for a child under 16.
The support can also be claimed for a child under 20 if they stay in approved education or training.
To be considered responsible for a child, you will live with them or you're paying at least the same amount as child benefit rates to look after them - for example food, clothes or pocket money.
It's important to note that eligibility changes if a child goes into hospital or care and if your child starts to live with someone else.
If you're not sure about your eligibility you can .
You won't be able to get the full amount of child benefit if you earn over £50,000 and you'll get nothing at all if you earn over £60,000.
That's because of something called the High Income Child Benefit Charge - but if it applies then it's still worth claiming.
What is the High Income Child Benefit Charge?
If either parent is earning over £50,000 they have to pay the high-income child benefit tax charge.
This means you pay back 1% of your child benefit for every £100 of income over this amount.
Once you reach £60,000 of income you have to repay the full amount.
The reduction applies when just one parent or guardian earns more than the threshold, and not on combined household earnings.
Parents have been caught out by the complicated rules and extra charge and have been landed with bills for thousands of pounds.
It's up to parents to notify HMRC if they are liable for the charge and they must file a self-assessment tax return to pay it.
How do I file a tax return?
TO file a self assessment tax retun, you'll need to register with HMRC first, which will then issue you with a Unique Taxpayer Reference (UTR).
You must register for self assessment by October 5 if you have to file a tax return and you have not sent one before.
You can do so by visiting www.gov.uk/register-for-self-assessment.
If you've previously registered and already have a UTR, you don't need to go through this step again.
Once you've got your UTR, you can sign in via the "Self Assessment tax return" section of HMRC's website by visiting www.gov.uk/log-in-file-self-assessment-tax-return.
You can then file your self assessment tax return online.
The deadline for sending a return online is January 31 every year.
If you need a paper copy of the main Self Assessment tax return, call HMRC on 03000 200 3610 and request an SA100 form.
The deadline for sending a return using a paper form is October 31 every year.
You need to pay the tax you owe by midnight on January 31 each year.
HMRC accepts your payment on the date you make it, not the date it reaches its account.
File late and HMRC will issue you with a fine.
Parents who do know about the charge could also end up missing out on cash.
They can decide to opt out of getting the benefit altogether to avoid having to pay money back, but they will miss out on National Insurance credits.
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These fill gaps in NI contributions when not working, and count towards how much state pension you get in retirement.
Experts have predicted that 2.5million families will lose child benefits by 2025 due to the threshold remaining the same.
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