Last week, we provided you with a detailed overview of the UK Spring Budget, outlining significant tax changes.
Following the Spring Budget, the Treasury has made adjustments to the Child Benefit Charge.
This change will result in an increase of over £1,000 annually for high-income earners with children.
Current Child Benefit
If you have children under the age of 16, or under 20 if they are in education or training, and you are responsible for their upbringing, you may be eligible for Child Benefit.
Currently, the eldest or only child receives £24 per week, while younger children receive £15.9 per week.
Child Benefit payments are typically deposited into the designated account every 4 weeks.
Child Benefit Changes
Starting from April 6, 2024, the eldest or only child will receive £25.6 per week, and younger children will receive £16.95 per week.
Qualified parents will receive approximately £1,331 in Child Benefit annually.
This benefit change applies nationwide.
High-Income Child Benefit
The aforementioned Child Benefit changes depend on the parents’ annual income.
Once one parent’s annual income exceeds £50,000, they will need to repay a certain percentage to the government.
For incomes exceeding £60,000, Child Benefit will need to be repaid in full.
However, this threshold will change in April, meaning proportional deductions will only occur for incomes over £60,000, and full repayment will only occur when the income reaches £80,000.
How to Apply for Child Benefit
You can apply for Child Benefit within 48 hours of birth registration or immediately when the child starts living with you.
If you delay your claim, the payment date may be postponed by up to three months.
Claims can be made online, by post, or over the phone.
You will need the following documents:
- Child’s birth or adoption certificate
- Your bank or building society details
- Your National Insurance number, and more.
