Did you know you can claim child benefit if you are responsible for bringing up a child who is either under 16 years old or under 20 (if they stay in approved education or training) and you live in the UK?
Only one person can get child benefit per child, however there is no limit to how many children you can claim for.
There are two child benefit rates, for your eldest or only child you could claim £21.15 per week any additional children thereafter you could claim £14 per child per week.
The benefit is paid out every four weeks. You can claim the child benefit as soon as you have registered the birth of your children, or your children come to live with you. It can take 6-12 weeks to process a new child benefit claim, and claims can be backdated for up to 3 months.
There are various family scenarios in which you can claim child benefit entitlements, these can be claimed for children of your own, children in split households, adoptions and even fostering a child.
If you or your partner earn over £50 000 per annum, you may be liable to pay back some of the child benefit in tax, this is known as high income child benefit tax charge. If one of the parents claiming child benefit earns over £60 000 then the full child benefit will be lost.
By claiming child benefit you can get national insurance credits that count towards your state pension, this would kick in if your child is under 12 years of age and you are not working, or your current earnings do not reach the national insurance contributions threshold.
Earning above the £60 000 threshold or paying for childcare? – here’s one for you:
The government has also opened a Tax-Free Childcare scheme to assist parents paying for approved childcare. The scheme will see HMRC contribute £2.00 for every £8.00 of childcare paid for by a parent into the scheme up to the value of £10,000 per child per year.
You can apply for the scheme here!
Further information is available here.
Please note, you cannot receive the Tax-Free Childcare along with claiming working tax credit, child tax credit, universal credit or childcare vouchers.
How can we help?
SAIL can structure your salary and dividend take home to ensure that you are receiving the most tax efficient earnings as well as ensure that you are kept within the basic tax threshold so as not to lose out on this child benefit.
For further information, or assistance in apply for the child benefit claim or tax-free childcare scheme, please contact our offices at: info@sailsolutions.co.uk