What is Child Benefit?
Child benefit is a government-provided allowance for each child at fixed rates. However, if your income exceeds certain thresholds, you may be subject to the High Income Child Benefit Charge (HICBC), which can reduce or eliminate this benefit.
Changes to HICBC Thresholds
From 6 April 2024, the HICBC threshold will rise from £50,000 to £60,000. If you stopped claiming child benefit to avoid this charge, you may want to reapply if your income is now between £60,000 and £80,000.
How HICBC Works
The HICBC applies when you or your partner earn more than £60,000 in a tax year. The charge is 1% of the child benefit for every £200 earned above £60,000, fully withdrawing the benefit by £80,000. This must be reported in your tax return.
Previous Years and Reporting
For tax years prior to 2024/25, the threshold was £50,000. You should review whether you needed to report the HICBC in past years, and seek advice if necessary.
Impact of Not Claiming Child Benefit
Even if your income exceeds the limit, claiming child benefit may still be beneficial. It can help protect your state pension entitlement and ensure your child is automatically issued a National Insurance number at age 16.
Reapplying for Child Benefit
If you previously stopped receiving child benefit, it won’t restart automatically. You must reapply, and payments can be backdated by up to three months.
