Updating HMRC is probably at the bottom of your to-do list when you’re expecting a baby. We can understand that. But it’s important to know about your Child Benefit entitlements.
Completing the Child Benefit form has many benefits, beyond just the payments. Click here to find out more.
Filling out the claim form will mean you can protect your state pension by helping you to get National Insurance credits until your child turns 12. If you are on maternity leave, and aren’t working for a certain period, or do not earn enough to pay National Insurance contributions, Child Benefit can help you qualify for these credits which count towards your state pension.
If one of you is working and the other isn’t, something as simple as making sure the claim for Child Benefit is in the name of the non-working parent/carer can help protect their state pension, meaning you will both get the state pension you’re entitled to!
Claiming Child Benefit will also help your child get their National Insurance number automatically at 16.
Child Benefit is paid at a weekly rate of £20.70 for the first child and £13.70 for each additional child.
High Income Child Benefit Charge
You may have heard of the ‘High Income Child Benefit Charge’ - a tax charge on Child Benefit payments that has to be paid if either partner has an income of more than £50,000.
Don’t let this put you off from completing the form. You can opt out of receiving the payments so you won’t have to pay the charge, and this will still protect your state pension.
Even if you do have to pay the tax charge, you could still be better off by claiming Child Benefit – the tax is 1% of Child Benefit for each £100 of income over £50,000. Use the tax calculator to work out how much tax charge you may have to pay. Click here to use the tax calculator.