Child Benefit Explained
At present the Child Benefit is paid as a weekly rate of £20.70 for your first child and then £13.70 for each additional child.
Child Benefit as a universal benefit which does three things: Allows you to receive child benefit payments Protects your state pension by receiving National Insurance credits until your child turns 12 Help your child receive their National Insurance number automatically when they turn 16 At present (January 2022) the Child Benefit is paid as a weekly rate of £20.70 for your first child and then £13.70 for each additional child.
If your child has two parents’ responsible for them, then only one parent can claim Child Benefit. Every parent and carer should complete the Child Benefit claim form .
even if they don’t qualify for the weekly payments, so they can claim the additional benefits as mentioned above. Parents also need to consider who should apply for the Child Benefit, if one parent doesn’t work then they should apply to benefit from the National Insurance credits to protect their state pension. It is also possible to transfer National Insurance credits from one parent to another so the right parent protects their state pension entitlement. Does everyone receive the weekly payments? In 2013 the government introduced the High-Income Child Benefit Charge which applies to anyone earning over £50,000.
If you or your partner earns between £50,000 – £60,000 then you will be taxed a percentage of the Child Benefit, you need to complete a Self-Assessment for.
each financial year to calculate. An example given by HMRC: in 2018-19, if you have 2 children and your income is £55,000, you will receive £1,788in Child Benefit payments and pay the charge of £894, so you keep 50% of the Child Benefit payment.
If your income is lower e.g. £53,000 then you would keep 70% of Child Benefit.
If you or your partner earn £60,000 or over then you will have to pay the full Child Benefit back through the High Income Child Benefit Charge, again this is calculated by completing a Self-Assessment.
To work out how much you may receive in Child Benefits, use this Child Benefit tax calculator . Opting Out of the High-Income Child Benefit Charge If you are liable to the charge then you can opt out of receiving the Child Benefit payment altogether so you avoid the charge but still receive the non-financial benefits. To do this you need to complete the Child Benefit claim for.
– remember to think about who should complete the form to protect their pension.
At present the Child Benefit is paid as a weekly rate of £20.70 for your first child and then £13.70 for each additional child.