HMRC urging parents to claim £1300 Child Benefit after rule change

New PAYE repayment rules make it easier for higher earners to manage the tax charge.

In a fresh reminder, HMRC said: “Got a child under 16 (or under 20 in approved education training)? Join over one million parents and carers who have claimed Child Benefit online. Up to £26.05 a week for your first child, £17.25 for any additional children and National Insurance credits towards your State . PensionClaim on the HMRC app or online.”

How much is Child Benefit?

Child Benefit currently pays:

• £26.05 a week for a first child
• £17.25 a week for additional children

That is worth £1,354.60 a year for one child.

From April, that will rise from £26.05 to £27.05 per week and payments for additional children will go from £17.25 to £17.90 per week.

That’s around £1,406 for one child.

Payments are usually made every four weeks and apply to children under 16, or under 20 if they stay in approved education or training.

What has changed for higher earners?

If you or your partner earns over £60,000, you may still have to repay some of the benefit through the High Income Child Benefit Charge.

Previously, many parents had to register for Self Assessment just to repay this charge.

Now, if the Child Benefit charge is the only reason you would need to file a tax return, you can opt to pay it back through PAYE instead.

This means:

• HMRC adjusts your tax code
• Repayments are taken automatically from your salary
• No need to complete a full Self Assessment return just for this charge
• Parents only need to opt into PAYE once, and it continues unless circumstances change.

The charge works on a sliding scale:

• Repay 1 percent of your benefit for every £200 earned over £60,000
• At £70,000 income, you repay 50 per cent
• At £80,000 or more, you repay 100 per cent

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Why it might be worth claiming Child Benefit even if you repay it

Even if you earn £80,000 or more and will repay the full amount, experts say you should still register.

That is because claiming secures valuable National Insurance credits, which count towards your State Pension.

Parents can choose to claim Child Benefit but opt out of receiving payments, still protecting their pension record.

Experts say you should review your position if:

• You earn over £60,000
• Your partner earns over £60,000
• You recently had a pay rise
• You stopped claiming because of income

Missing credits could reduce your future pension income by thousands of pounds.