As a new parent, you may have heard about Child Benefit, but do you really know what it is and how to claim it? It is a tax-free payment made by the government to help parents with the cost of raising children ...
You deserve all the support you can get, and Child Benefit is just one of the many benefits available to help you!
Child Benefit is available to all parents and can make a significant difference in your family's finances. In this comprehensive guide, we will delve into the intricacies of claiming it and help you understand how to make the most of this valuable support.
"It is important to note that child benefit is available for each child under the age of 16 or under 20 if they are still in education or training!"
If you have more than one child, you will receive a separate payment for each child. The amount of child benefit you receive depends on the number of children you have, with the current rates set at £21.05 per week for the eldest or only child, and £13.95 per week for each additional child.
Now, let's get to the important question - how do you claim it? The process has now become much easier, thanks to the new online system introduced by HM Revenue and Customs. You can now apply for Child Benefit online.
All you need to do is fill out the online form and provide the necessary information, such as your personal details, your child's birth certificate, and your National Insurance number. Once your application is approved, you will receive a letter confirming your Child Benefit payments.
"But what if you have missed the deadline to claim for your child?"
Don't worry, you can still make a late claim and receive payments for up to 3 months before your application. However, it is important to note that if you miss the deadline by more than 3 months, you will not be able to claim the missed payments. Therefore, it is crucial to make your application as soon as possible.
One of the most significant changes in claiming Child Benefit is the introduction of the High Income Child Benefit Charge (HICBC). This means that if you or your partner earns over £50,000 per year, you may have to pay back some or all of your Child Benefit through your tax return. This can be a complex process, and it is advisable to seek professional advice if you are unsure about the HICBC.
Child Benefit is not just a financial support for new parents; it also comes with other benefits. For example, by claiming, you will automatically receive National Insurance credits, which can help you qualify for the state pension and other benefits.
Moreover, if you are a non-working parent, claiming Child Benefit can also help you build up your National Insurance record, which can be beneficial in the long run!
Claiming Child Benefit has now become much easier, thanks to the new online system. As a new parent, it is crucial to make the most of this valuable support and understand its intricacies. Remember to apply for Child Benefit as soon as possible, even before your child is born, to receive the maximum payments.
You deserve all the support you can get, and Child Benefit is just one of the many benefits available to help you on your parenting journey.
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, how much you can claim and what to do about HICBC, 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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