Child benefit is available to any parent, but if you earn over a certain amount you may need to pay some or all of it back. Here I will talk you through all the things you need to know about eligibility, how to claim and when to repay.

Who is eligible to claim child benefit?

If you are responsible for a child for any reason then you can claim Child Benefit for them. This can apply if you are not their biological parent (e.g adoption, fostering or an informal arrangement to look after someone else’s child) or even in certain circumstances if you are living abroad.

Only one person can claim for each child, so for parents who are separated or where you are the guardian for someone else’s child, it is important to agree who will claim for Child Benefit.

When is a child eligible?

Your child is eligible for child benefit from when the birth is registered, although this can be backdated to the day that they are born. They will remain eligible until the age of 16 (or 20 if they stay in approved education or training).

If a 16 or 17 year old leaves education or training and registers with the armed services or a government sponsored careers service, you will continue to receive child benefit for 20 weeks.

However, a child may lose their eligibility for child benefit if they start paid work for 24 or more hours per week and aren’t in approved education or training, if they start an apprenticeship or they start getting benefits in their own right (e.g. Income Support, Employment and Support Allowance or tax credits).

How much is it?

Child Benefit is currently £21.05 per week for the first child and £13.95 per week for any other children.

As Child Benefit is paid every 4 weeks, this works out to be £84.20 for each payment for the first child and £55.80 for each payment for any subsequent children.

When might I have to repay it?

If the income of either you or your partner individually exceeds £50,000 per year, then you will need to repay some of the Child Benefit you have claimed. This is called the High Income Child Benefit charge.

The amount you will have to repay is 1% of your claimed Child Benefit for every £100 you earn over £50,000. This means that if you earn over £60,000 you will need to pay the Child Benefit back in full. 

How do I pay the High Income Child Benefit charge?

Repaying Child Benefit needs to be done through completing a self-assessment tax return at the end of each financial year. You can complete this yourself or get an accountant to do it for you. Once your self-assessment has been completed, you will be advised on how much you have to repay and how to do so.

Is there any reason why I might still want to claim it if I will repay it in full?

There are a few reasons you might want to do this.

One is that if your partner has a low income, they can get National Insurance credits which will help to maximise their State Pension.

If you claim Child Benefit then your child will automatically get a National Insurance number when they’re 16 years old.

Finally, as we have seen over the last year you never know when your circumstances will change. It may be that at the start of the year, you thought you would earn over £60,000 and have to repay the full benefit but then your income changes and perhaps you do not have to do so. 

How can I claim Child Benefit?

In order to claim, you will need to fill out a CH2 form. This can be found here: https://www.gov.uk/child-benefit/how-to-claimIf you have any questions about Child Benefit, please feel free to get in touch with Anderson Accounts via our email: office@anderson-accounts.co.uk