Restarting Child Benefit Claims: Could You Be Missing Out?
If you previously opted out of receiving child benefit due to the High Income Child Benefit Charge (HICBC), you might want to reconsider. Changes that took effect from April 2024 mean that some parents who lost all their child benefit to the charge may now be able to keep some – or even all – of it. Here’s how the changes could affect you and why it’s worth restarting your child benefit claim.
What’s Changed with the HICBC?
Before 6 April 2024, the HICBC applied if either you or your partner had an adjusted net income of more than £50,000. The charge increased by 1% for every £100 of income above £50,000, and once you hit £60,000, the charge equalled the full amount of the child benefit.
From 6 April 2024, the income threshold has shifted. Now, the HICBC kicks in at £60,000, with the charge increasing by 1% for every £200 above this figure. The charge will only be equal to the full amount of the child benefit once your adjusted net income hits £80,000.
If both you and your partner have income above the threshold, the charge is applied to the person with the higher income.
Why This Matters for Your Child Benefit
Even if you decided not to receive child benefit in the past, it’s always worth claiming it to protect your National Insurance credits. These credits count towards your State Pension, which is especially important if you’re not paying enough National Insurance in a particular year to qualify.
Previously, if your adjusted net income was £60,000 or more, the HICBC would have wiped out your entire child benefit. So, many parents simply opted out of receiving it. But now, with the threshold increased to £80,000, you could retain some or all of your child benefit depending on your income.
For example:
- In 2023/24, if your income was £60,000 or more, the HICBC would have equalled 100% of your child benefit, leaving you with nothing.
- In 2024/25, if your income is between £60,000 and £80,000, the HICBC will be less than 100% of your child benefit – meaning you get to keep some of it!
If your or your partner’s income is now between £60,000 and £80,000, it’s a good idea to restart your child benefit claim so you don’t miss out.
How to Restart Your Child Benefit Payments
To restart your child benefit payments, you’ll need to take action – and the sooner, the better. It can take up to 28 days to receive your first payment after restarting. HMRC will also let you know in writing if you’re eligible for backdated payments.
Here’s how to restart:
- Use the online service or complete the online form.
- Alternatively, you can contact HMRC by phone on 0300 200 3100, or write to them at:
HM Revenue and Customs – Child Benefit Office
PO Box 1
Newcastle upon Tyne
NE88 1AA
Don’t Miss Out!
If you fall into the income bracket where you could now retain some or all of your child benefit, it’s worth acting quickly. Restarting your payments could mean extra money in your pocket, and it helps you continue building up National Insurance credits for your State Pension.
Need help navigating the changes or checking if you’re eligible? Contact Jon and the team at Jon Davies Accountants – we’re here to help you make the most of your finances.
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