Changes to Child benefit withdrawal

Child benefit can be claimed where you’re responsible for a child under 16 (or under 20 if they’re in approved education or training). Child Benefit will be paid at a weekly rate of £26.05 for the first child and £17.25 for each additional child from 6 April 2025. However, child benefit, or part of it, can be reclaimed by HMRC via self-assessment if one partner receives a ‘high income’. High income in previous years has been set at £50,000 (with full withdrawal at £60,000) but from 6^th April 2024 this threshold rose to £60,000 (with full withdrawal at £80,000). If you or your partner earn £80,000 or more

• You could consider whether making pension contributions or gift aid donations may bring that income down to mean that some child benefit is still retainable.
• If the lower earner does not currently have a role which accrues state pension qualifying years they should consider opting in with a repayment of the child benefit being made via the higher earner’s tax return.

If you or your partner earn £60,000-£79,800 maximum

• Consider opting in for child benefit as you will retain at least some of monies – but remember to set an appropriate amount aside for the claw back via self assessment.

If you and your partner earn under £60,000

• Opt in for child benefit!

If you’re just not sure what to do For help with any of the matters in this article please contact us.