{"id":100459,"date":"2024-12-26T11:40:00","date_gmt":"2024-12-26T11:40:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=100459"},"modified":"2024-12-26T11:14:24","modified_gmt":"2024-12-26T11:14:24","slug":"hmrc-child-benefit-update-for-uk-households","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrc-child-benefit-update-for-uk-households\/","title":{"rendered":"HMRC Reveals Key Child Benefit Update for UK Households Below \u00a380,000 Income"},"content":{"rendered":"\n<p>With the cost of living on the rise, this news highlights the government&#8217;s continued commitment to alleviating the financial burden of raising children. Families are urged to review their eligibility and make well-informed financial decisions because there could be savings and National Insurance contributions involved.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">HMRC : understanding child benefit eligibility<\/h2>\n\n\n\n<p>A monthly payment known as <strong>child benefit <\/strong>is given to parents or guardians of children under the age of sixteen, or under twenty if the youngster is still enrolled full-time in school or receiving authorised training. <strong>As of April 2024<\/strong>, the maximum yearly household income level has been established at <strong>\u00a380,000<\/strong>, although the financial help fluctuates based on the circumstances.<\/p>\n\n\n\n<p>Claimants may be liable to the High Income <strong><a href=\"https:\/\/www.gov.uk\/child-benefit-tax-charge\" target=\"_blank\" rel=\"noopener\">Child Benefit Charge<\/a><\/strong> (HICBC), a clawback mechanism that requires repayment of all or part of the benefit through <strong>tax returns<\/strong>, if their household&#8217;s yearly income exceeds<strong> \u00a360,000<\/strong>. However, those earning below this threshold can claim the full entitlement, provided their child<strong> lives with them or they contribute equivalent financial support for the child\u2019s care<\/strong>.<\/p>\n\n\n\n<p>\u201cThink you earn too much to receive Child Benefit payments? Check again to make sure you&#8217;re not missing out on money. To see what you could get, use our Child Benefit tax calculator below, before restarting payments online or in the <a href=\"https:\/\/www.gov.uk\/guidance\/download-the-hmrc-app\" target=\"_blank\" rel=\"noopener\">HMRC app<\/a>\u201d the HMRC said. <\/p>\n\n\n\n<p>This highlights the importance of accurate <strong>self-assessment<\/strong> to prevent underclaiming. Low-income families are therefore particularly encouraged to check their eligibility using HMRC&#8217;s tax calculator to avoid missing out on these vital payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">National insurance credits: a hidden advantage<\/h2>\n\n\n\n<p>Beyond <a href=\"https:\/\/en.econostrum.info\/uk\/household-support-fund-offers-support\/\" data-type=\"post\" data-id=\"100369\">financial support<\/a>, Child Benefit offers an often-overlooked benefit in the form of <strong>National Insurance <\/strong>(NI) credits. These credits can contribute significantly to an individual\u2019s state pension entitlement, filling potential gaps caused by <strong>low earnings or career breaks<\/strong>.<\/p>\n\n\n\n<p><strong>HMRC<\/strong>\u2019s<strong> <\/strong>recent case study demonstrates the transformative impact of these credits. A parent, whose spouse had a <strong>10-year gap<\/strong> in NI contributions due to a low-income job, successfully transferred their Child Benefit-linked credits. This action spared the family an estimated \u00a37,000 in voluntary contributions and ensured the spouse&#8217;s pension record remained intact.<\/p>\n\n\n\n<p>Claimants are reminded that even if they choose to waive the financial payment of Child Benefit to avoid <strong>HICBC<\/strong>, registering a claim ensures they receive the associated NI credits. With the HMRC urging households to take action, families earning under \u00a380,000 should reassess their eligibility to maximise these financial and long-term benefits<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Families in the UK have received a timely alert from HMRC about their eligibility for Child Benefit. The update emphasizes that many households earning less than \u00a380,000 annually may be eligible to claim or reevaluate their entitlement, with the goal of ensuring that no eligible household is denied essential financial support.<\/p>\n","protected":false},"author":10,"featured_media":100461,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-100459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-welfare","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/100459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=100459"}],"version-history":[{"count":4,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/100459\/revisions"}],"predecessor-version":[{"id":100478,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/100459\/revisions\/100478"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/100461"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=100459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=100459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=100459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}