Explaining child benefit
Child benefit is a government initiative that was developed to help families with the cost of raising children. In essence it is a form of social welfare where the government will provide a regular monthly payment to assist both parents and guardians with the associated costs of having children.
There are a number of steps as to how this works:
Eligibility – Typically child benefit is available once a child is born and will run until they reach 16 and leave school or up to the age of 20 if they stay in full time education. Only 1 person can claim for child benefit, but you can claim for every child in the household. If the person claiming for the child benefit earns over £60,000 then a high income child benefit charge will apply and if either partner earns over £80,000 then a claim should not be made.
Allowance – For the first child a payment of £25.60 per week will be made, for any additional children the payment is £16.95 per child per week. So, if the claim is for 2 children the total 4-weekly payment will be £170.20.
Application – An application can be made within 48 hours of the registration of the birth of a child. A claim can be made via the government website – https://account.hmrc.gov.uk/child-benefit/make_a_claim/recently-claimed-child-benefit. To apply, a birth certificate or adoption certificate, bank or building society details, National Insurance number and if relevant a partners National Insurance number, are required.
Changes – If there are any changes in circumstances that could affect the validity of the claim then the Government will need to be notified (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/child-benefit). Also, if the household has a parent or guardian that starts to earn over £60,000 per annum then it would be advisable to withdraw from the scheme.
So, in summary, child benefit is an initiative to provide financial support and help ease the financial impact of raising children. Its overall aim is to reduce poverty by providing a steady source of income to families.
If you have any questions or need some help with child benefit, then our team of experienced accountants are happy to help. Please call our team on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
You can also book a free 20-minute call with Yarka – https://calendly.com/yarka-ssa/20min
