Latest news with #HighIncomeChildBenefitCharge
Daily Mirror
a day ago
- Business
- Daily Mirror
Child Benefit change coming this summer for thousands of families
You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead The way higher income families pay back part of their Child Benefit is changing this summer. Child Benefit is worth £26.05 a week for your first child, then £17.25 for any additional child. It is a payment that is given to someone who is responsible for bringing up a child - but if you earn over a certain amount, you have to pay back part of your Child Benefit. If you, or your partner, earn over £60,000, you have to pay back 1% of your Child Benefit for every £200 you earn over £60,000. Once you earn over £80,000, you pay all your Child Benefit back. This is known as the High Income Child Benefit Charge. You normally pay the High Income Child Benefit Charge through self-assessment - but there will soon be the option to do this through your PAYE tax code instead. HMRC will contact families when a new digital system goes live, which is expected to happen this summer. You will still be able to pay the High Income Child Benefit Charge through self-assessment if you want to. In the 2022/23 tax year, 440,000 individuals paid a total of £525million in High Income Child Benefit Charge. Crucially, the figures above count per person - so if you are in a couple, you could both earn £59,000 and not be subject to the charge. You can make a claim for Child Benefit without getting the payments, in order to get National Insurance credits which count toward your state pension, if you don't want to pay the charge. The High Income Child Benefit Charge was previously £50,000 a year before you start to pay it back, but this was raised to £60,000 for the current tax year. Child Benefit is claimed by more than seven million families. You can claim Child Benefit if you're responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training. This can include A-Levels, NVQs or even home education, but it does not include university or BTEC qualifications. The child normally has to live with you, or you pay at least the same amount as Child Benefit toward looking after them. You can claim Child Benefit if you fostered a child, as long as the local council is not paying anything towards their accommodation or maintenance, if you adopted your child. You may also be entitled if you're looking after a child for a friend or relative. There is no limit for how many children you can claim Child Benefit for, but if two people look after a child, only one person can claim Child Benefit. Child Benefit is paid every four weeks by HMRC on a Monday or Tuesday.
Yahoo
2 days ago
- Business
- Yahoo
HMRC issues warning to parents that are 'missing out' on Child Benefit
HM Revenue and Customs (HMRC) has issued a warning to parents who might be "missing out" on Child Benefit payments. Child Benefit is a monthly payment for anyone with parental responsibilities for children under the age of 16 (or up to 20 in full-time education). Yet, parents that are higher earners may have decided to opt out of the benefit due to the High Income Child Benefit Charge, but changes from the last tax year mean the threshold for this has altered. Read more: HMRC urges young people looking for summer jobs to check essential details Following the 2023/24 tax year, the earning threshold before the charge applies has risen from £50,000 to £60,000 for 2024/25. Making the announcement on X, HMRC wrote: "Opted out of Child Benefit payments because of the High Income Child Benefit Charge? "The amount you or your partner can earn before paying the charge is now £60k, so you may be missing out on a cash boost." HMRC has previously stated the 2025/26 Child Benefit rates for a first-born or only child stand at £26.05. For additional children, it's £17.25 per child. If you (or your partner) earn £60,000 a year or under, you can claim the full entitlement of Child Benefit. This is only if the child you're applying for lives with you, or if you're paying at least the same weekly amount as the benefit towards looking after them. You can start a claim for Child Benefit 48 hours after your child's birth has been registered or if a child has come to live with you. However, you can also backdate the claim up to three months from the date you submit it. Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
Daily Mirror
10-06-2025
- Business
- Daily Mirror
HMRC says DWP scheme can help towards state pension
A customer contacted the authority confused about a letter they had received HMRC has pointed to how claiming a DWP benefit could help build up your state pension entitlement. The tax authority explained the scheme after a question from a taxpayer over social media. The person said they had received a letter about the High Income Child Benefit Charge, which is where you have to pay back part or all of the benefit depending on your level of income. The taxpayer explained: "We stopped the Child Benefit due to my wage increase but then we received a letter stating that we are entitled to claim, even though I had to pay back over £1,000. We're totally lost with it all." In response, HMRC explained how the charge works: "For the current year, if you earn more than £60,000 you start to have to pay some of the Child Benefit back, and at £80,000 you pay all of it back." These thresholds apply to each person's individual income within a household. HMRC also mentioned how a couple could take advantage of the rules to get a state pension boost. The group said: "If one of you is not in employment at all, claiming the Child Benefit in their name would give them National Insurance credits (NI) towards the state pension. "You are able to claim, but not actually receive any money, just the NI credits. If you did that, you wouldn't have to file a tax return." A claimant will automatically get NI credits if they have a child who is under 12 and if you do not pay National Insurance. A person typically needs 35 years of full NI contributions to get the full new state pension, which currently pays £221.20 a week. Child Benefit is currently worth £26.05 a week for your eldest or only child, and £17.25 a week for each additional child you have. The benefit is paid every four weeks either on a Monday or on a Tuesday. In other benefits news, the Government has announced that the eligibility for the Winter Fuel Payment will be expanded from next year, with all state pensioners to qualify. However, those with an income over £35,000 will have to pay it back. Currently, you have to be of state pension age and on a certain means-tested benefit to qualify, such as Pension Credit. The payment was worth £200 or £300 this past winter. More details about next winter's payment will be published at the end of June 2025.
Wales Online
01-06-2025
- Business
- Wales Online
Parents warned child benefit could stop if they don't act ahead of looming deadline
Parents warned child benefit could stop if they don't act ahead of looming deadline HM Revenue and Customs (HMRC) is warning parents that they need to take action to avoid missing out on Child Benefits which could be worth thousands of pounds each year HM Revenue and Customs (HMRC) is currently issuing reminders to parents of teenagers aged 16 to 19 ahead of a key deadline in August. If they fail to update their Child Benefit claim by this date, payments will cease automatically. The cut-off point for updating the online account to maintain the benefit is August 31, 2025. This update is crucial for parents whose teens are pursuing further education or training. For all the latest money-saving tips, sign up to our Money newsletter here . Parents can swiftly and conveniently extend their claim using the HMRC app or by visiting online. The reminder letters also feature a useful QR code that directs parents straight to the digital service on Child Benefit stands at £26.05 weekly for the eldest or an only child, totalling £1,354.60 annually, and £17.25 per week for each additional child, amounting to £897 yearly. Last year saw over 870,000 parents renew their Child Benefit claims for their teenagers, with most confirmations done quickly online or through the HMRC app. Myrtle Lloyd, HMRC's Director General for Customer Services, commented: "Child Benefit is an important boost to families. As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to or the HMRC app to confirm today," reports the Daily Record. Children who are engaged in full-time studies in approved non-advanced education are eligible for continued Child Benefit payments. Child Benefit will continue to be provided for children enrolled in certain unpaid approved training courses. If a child decides not to pursue further education or training, parents can simply notify HMRC online or via the app, and payments will be adjusted accordingly. If either the claimant or their partner earns between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families in this income bracket, the online Child Benefit tax calculator can provide an estimate of the benefit they will receive and the potential charge. As part of the UK Government's Plan for Change, starting this summer, families will have the option to pay the charge directly through their PAYE tax code using a new digital service, eliminating the need to file a Self Assessment tax return. This new service aims to reduce bureaucracy for eligible employed parents liable to the High Income Child Benefit Charge, although those who prefer to pay the charge through their Self Assessment can continue to do so. Families who have previously opted out of Child Benefit payments can choose to opt back in and restart their payments quickly and easily online or via the HMRC app. Article continues below Upon turning 16, teenagers can take control of their Child Trust Fund savings account, which could potentially be worth thousands of pounds. They can withdraw the money once they turn 18. Child Trust Funds were established for every child born between 1 September 2002 and 2 January 2011. Teenagers or their parents and guardians who are aware of their Child Trust Fund provider can get in touch with them directly. If they're unsure about the whereabouts of their account, a free online tool on can help locate their Child Trust Fund provider.
Daily Mirror
28-05-2025
- Business
- Daily Mirror
DWP State Pension changes to help Brits receive 'higher' payments
The full new State Pension currently stands at £230.25 per week, which is around £11,973 for the 2025/26 financial year alone The UK Government has announced an upgrade to the 'Check Your State Pension' online service in a bid to help Brits get full State Pension payments when they retire. At present, the full new State Pension stands at £230.25 weekly, adding up to around £11,973 throughout the 2025/26 financial year. Qualification for the State Pension is linked to National Insurance Contributions (NICs), with a minimum of 10 years' worth to be eligible for any pension sum and about 35 years for the full rate. Extra years might be necessary if you were 'contracted out' - with in-depth information accessible on here. The Check Your State Pension forecast service enables anyone to make voluntary National Insurance contributions to bridge any gaps in their NIC history. Treasury minister James Murray says the planned amendments will improve the user experience. In a written statement to Parliament, the minister recently outlined a series of new simplified measures and updated guidance for the self-employed. It is also for those paying the High Income Child Benefit Charge, and anyone who wishes to maximise their State Pension by purchasing voluntary National Insurance Contributions. "The government also intends to further enhance the Check Your State Pension forecast service, which supports people who want to pay voluntary National Insurance contributions to fill gaps in their National Insurance record," the statement from April 28 reads. "These measures build on the government's announcement at Spring Statement 2025 that from Summer 2025, employed individuals who become liable to the High Income Child Benefit Charge (HICBC) will be able to opt to pay HICBC directly through PAYE, without the need to register for Self Assessment." The State Pension age will rise from 66 to 67 for both men and women between 2026 and 2028, with a subsequent increase to 68 expected to be implemented between 2044 and 2046, according to the Daily Record. This implies that people born between March 6, 1961, and April 5, 1977, will be able to start claiming their State Pension as soon as they reach the age of 67. However, a recent study by Just Group has highlighted a worrying trend. Over a third of retirees did not check their State Pension forecast before retiring, even though for 1.2 million households, the State Pension constitutes the primary source of income during retirement. The survey, which questioned more than 1,000 people either already retired or approaching retirement age, revealed that 38% had not looked at their pension forecast. This figure increased to 40% among those aged 55 to 64 who were yet to reach State Pension age, and 46% among early retirees. Among those who did examine their prospective State Pension income, about 17% found out that it would be at least £250 less per year than they had expected. On the flip side, 9% were pleasantly surprised to discover that their pension would be higher than anticipated by a similar margin. Commenting on the findings, Stephen Lowe, group communications director at Just Group, said: "It's easy to see why people may assume they'll simply get the full State Pension, but for many people this won't be the case. The last thing these households need when they come to retire is the nasty surprise that their State Pension is less than they thought. "The government offers a State Pension forecast service and we urge anyone approaching retirement to use it - ideally in advance of beginning to retire. It will tell you if you are likely to receive less State Pension than you thought and that will give you the opportunity to take steps to increase what you will actually receive." State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175
