Child Benefit for 16-Year-Olds In Further Education
What parents need to know ...
Posted by Helen Beaumont on 29/05/2024 @ 8:00AM
As children reach the age of 16, they may choose to continue their education after GCSEs. In the UK, this means that parents must reclaim child benefits for their children who are still in full-time education ...
Remember, every penny counts when it comes to raising a family!
This process can be confusing and overwhelming for many parents, but it is crucial to ensure that they receive the financial support they are entitled to. Here's everything you need to know about reclaiming child benefits for 16+ in the UK.
The UK government has recently issued a warning to 1.4 million parents to extend their child benefit claims if their children plan to remain in full-time education after the age of 16. This means that parents must reclaim child benefits for their children who are still in education, as the benefit is only paid until the child reaches the age of 16!
Child benefit is a tax-free payment made by the UK government to help parents with the cost of raising children. It is paid to the main carer of a child under the age of 16, or under 20 if they are in full-time education or training. The current rate for child benefit is £25.60 per week for the eldest or only child, and £16.95 per week for any additional children.
"This can make a significant difference in a family's budget!"
The process of reclaiming child benefits for 16+ is not automatic, and parents must take action to continue receiving the benefit. This involves visiting the Government Gateway before the child's 16th birthday. It is important to note that if the reclaim process is not completed before the child's 16th birthday, the child benefit payments will stop.
One of the main reasons for reclaiming child benefits for 16+ is to ensure that the child continues to receive National Insurance credits. These credits are essential for building up the child's National Insurance record, which is crucial for their future state pension entitlement. If the child is not in full-time education or training, they will not receive these credits, which could have a significant impact on their future pension.
"However, there are exceptions to the rule!"
If the child is receiving certain benefits or is in custody or detention, they will not be eligible for child benefits after the age of 16. In these cases, the parents do not need to reclaim child benefits, and the benefit will stop automatically. It is essential to check if you are unsure about your child's eligibility.
In some cases, parents may choose not to reclaim child benefits for 16+ because they are high-income earners. This is because of the High-Income Child Benefit Charge (HICBC), which was introduced in 2013.
"This charge applies to individuals earning over £60,000 a year!"
Reclaiming child benefits for those 16 and over is essential for parents to ensure that their children continue to receive financial support and National Insurance credits. If you are unsure about your child's eligibility or have any questions about the process, it is best to visit the Government Gateway for guidance or speak to a tax adviser like me.
Remember, every penny counts when it comes to raising a family, and child benefits can make a significant difference in your budget.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about child benefit for 16-year-olds In further education, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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