HMRC warns 'you could be missing out on cash' after threshold change in new alert

The tax office has urged Britons to check if they can claim as a threshold change means hundreds of thousands more people qualify for it. As of April 2024, households can earn up to £60,000 and be eligible for the .

In a new post on X, HM Revenue and Customs (HMRC) wrote: "Parents! You could be missing out on cash. The threshold to start paying the High Income Child Benefit Charge has increased to £60,000. Claim online or in the HMRC app."

Before now, families were only allowed to earn up to a net income of £50,000 to claim Child Benefit before the High Income Child Benefit Charge (HICBC) came into effect. The HICBC reduced the person's Child Benefit payment by 1% for every £100 earned over that amount. This meant parents formerly had to repay all their Child Benefit through a self-assessment once they earned £60,000.

However, the threshold now starts at £60,000, with 1% taken for every £200 earned over this amount. A larger earnings threshold means thousands more families qualify to claim.

In its impact assessment published last year, HMRC said the change would positively impact 485,000 families. This included around 305,000 people who were paying the HICBC and would have it reduced, as well as 170,000 individuals no longer liable for the charge.

It's important for families to check if they qualify for Child Benefit, as claiming can boost their finances by thousands of pounds per year.

How much is Child Benefit?

There are two Child Benefit rates. For the eldest or only child, claimants receive a weekly rate of £26.05. For every additional child, the payment rate is £17.25 per week. Based on two children, people could receive up to £2,242.6 per year.

Who can claim Child Benefit?

To claim Child Benefit, people must live in the UK and be responsible for someone under 16. This usually means they live with the child or pay at least the same amount as Child Benefit towards looking after them. Only one person can claim Child Benefit, even if they are in a couple.

People may be able to continue claiming Child Benefit until the child turns 20 if they are in approved education or training. This can include A-Levels, NVQs, or even home education, but it does not include university or BTEC qualifications.

Whichever parent claims will get National Insurance credits towards their state pension. The credits can fill gaps in your record if you're not working or do not earn enough to pay National Insurance contributions. This should help couples decide who is best to claim the benefit. For example, the stay-at-home parent or parent working part-time may want to make the claim, rather than a full-time working parent.

To claim, parents can fill out the form on . They can also claim by post or by phone .