Child benefit payments
The weekly rates of child benefit for the only or eldest child in a family is currently £20.70 and the weekly rate for all other children is £13.70. These rates have remained unchanged for some time. Taxpayers entitled to the child benefit should be aware that HMRC usually stop paying child benefit on the 31 August following a child’s 16th Birthday. Under qualifying circumstances, the child benefit payment can continue until a child reaches their 20th birthday if they stay in approved education or training.
Child benefit is usually payable for children who come to the UK, however, there are a number of rules which must be met in order to claim. HMRC must be notified without delay if a child receiving child benefit moves permanently abroad.
It is also possible to claim Guardian’s Allowance if you are bringing up someone else’s child because one or both parents have died. The Guardian’s Allowances is paid on top of child benefit and is currently £17.60 per week.
Beware related tax charge
The High Income Child Benefit charge applies to higher rate taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge either reduces or removes the financial benefit of receiving child benefit. Where both partners have an income that exceeds £50,000, the charge will apply to the partner with the highest income.
For taxpayers with income above £60,000, the amount of the charge will equal the amount of child benefit received. Taxpayers have the choice: to keep receiving child benefit and pay the tax charge through Self Assessment or elect to stop receiving child benefit and not pay the charge.