child benefit claim
Child benefit explained
- Learn who is eligible for child benefit payments
- Find out how much child benefit you are entitled to
- Work out how much tax you have to pay on child benefit payments
- See how you can increase your child benefit
Child benefit is a payment made to you by the government if you are responsible for a child.
Here, we explain who is eligible for child benefit, how it is calculated and how you can claim it.
Claiming child benefit payments
You can get child benefit if you’re responsible for a child – and you don’t necessarily need to be the child’s parent.
Your child needs to be either under 16, or under 20 and in an approved form of education or training (higher education degrees, for example, are not approved).
It’s only possible for one person to claim child benefit for a child. The payments are tax-free if both you and your partner’s income amount to less than £50,000 a year.
In order to claim child benefit, you will need to fill in a claim form. These are available to download from the HM Revenue Customs website. You need to send the claim form to the Child Benefit Office along with your child’s birth or adoption certificate.
Find out more: child tax credits – learn if you’re entitled to these as well
Child benefit rates
There are two rates of child benefit. You will receive £20.70 a week for your eldest, or only, child and £13.70 a week for each additional child.
Child benefit rates 2016-17
Can I claim child benefit if I earn over £50,000 a year?
You’ll pay tax on child benefit payments if you earn more than £50,000 a year
If you or your partner has an income over the £50,000 threshold and you accept child benefit, you will be required to pay a tax charge, known as the ‘high income child benefit charge’.
This is based on the income of the highest earner. The tax charge is paid by the higher earner via a self-assessment tax return.
The tax charge amounts to 1% of the child benefit paid for every £100 of income between £50,000 and £60,000 earned.
If either you or your partner earn over £60,000, this tax will amount to your entire child benefit entitlement. In this case, you are better off declining child benefit in the first place.
How high income child benefit charge is calculated
If, for example, your income is £56,000 and you have one child, you will be entitled to £20.70 per week, or £1,076.40 per year.
- Your income over £50,000 is £6,000.
- You will be required to pay tax of 1% for every £100 over £50,000.
- £6,000/100 is 60 so you will need to pay 60% of your child benefit back as a tax charge.
- £1,076.40 x 60% = £645.84
- Your tax charge will therefore be £645.84, leaving you with child benefit of £430.56.
Find out more: tax returns – how and when to fill one out
How to increase child benefit payments
There is a way for high earners to keep more of their child benefit. This is because a your ‘net-adjusted income’ taken into account when calculating how much child benefit must be repaid via the tax charge
The net adjusted income is what you have left after other deductions from your salary, such as pension contributions.
Example of net-adjusted salary
Say you have one child and earn £55,000 a year, but you make pension contributions of 3%. Your net-adjusted salary is £53,350 (£55,000 – £1,650)
On a salary of £55,000, you’d pay a tax charge of £533, leaving you with £533 in child benefit.
But with your adjusted salary of £53,350, you’d pay a tax charge of £357.11, leaving you with £708.89.
If you earn more than £50,000, you could therefore consider increasing your pension contributions in order to lower your adjusted net income and increase the amount of child benefit you’re entitled to.
It is also possible to reduce your adjusted net income by making charitable donations through Gift Aid, or by offsetting losses you’ve made in the stock market.
- We’ve listed 30 ways to reduce your tax bill
- Get a Best Buy child car seat by reading our reviews
- Get a personalised answer to your tax query from the Which? Money Helpline