Table of Contents

• Introduction
• What Is Child Benefit?
• Who Is Eligible?
• 2025 Child Benefit Payment Rates
• How to Claim Child Benefit
• High Income Child Benefit Charge (HICBC)
• How HICBC Is Calculated
• Why You Should Still Claim Child Benefit Even If You Repay It
• HMRC Updates for 2024–2025
• National Insurance Credits
• Child Benefit and Different Family Situations
• Backdating Child Benefit Claims
• Common Mistakes to Avoid
• Frequently Asked Questions
• Conclusion
• References

Introduction on HMRC child benefits

Child Benefit is one of the UK’s most widely claimed government payments, designed to support parents, guardians, carers, and families raising children. Although the payment looks simple at the surface, many people face confusion—especially because of HMRC letters, tax rules, pension implications, and the High Income Child Benefit Charge (HICBC).

This article is written with reference used in previous OneShekel HMRC articles, including

• HMRC tax coding notices
• HMRC state pension tax confusion
• Child Tax Credit HMRC guides

If you are a parent in the UK, this is the most detailed and practical guide you will need.

What Is Child Benefit?

Child Benefit is a tax-free, weekly payment from HMRC to help with the cost of raising a child. Only one person per household can claim it.

It does not depend on:

• your employment
• your savings
• whether you’re married or single

However, if your income exceeds £60,000, you may need to pay the High Income Child Benefit Charge.

Who Is Eligible from HMRC child benefit?

You can claim Child Benefit if:

• You are responsible for a child under 16, or
• A young person under 20 in approved full-time education (not university), or
• A child or young person with disabilities receiving DLA or PIP

You may be eligible even if:

• you are not the biological parent,
• the child lives with you,
• the child has been adopted,
• you are a grandparent carer.

Only one claimant per child is permitted.

2025 Child Benefit Payment Rates

For the 2024–2025 tax year, HMRC pays:

These amounts are:

• tax-free,
• paid regardless of income (though HICBC may apply),
• paid every 4 weeks, or weekly in some cases.

How to Claim HMRC Child Benefit

1. Claim by Post (Form CH2)

• Download form CH2 from GOV.UK
• Fill in details of the child
• Send supporting documents such as the birth certificate (HMRC returns it)

2. Claim Online (Government Gateway)

You can now:

• Log in using Government Gateway
• Upload documents
• Receive instant confirmation
• Track application progress

3. Claim Backdated Payments

You can backdate your claim up to 3 months from the date HMRC receives it.

High Income Child Benefit Charge (HICBC)

If you or your partner earns more than:

• £60,000 — you pay a partial charge
• £80,000+ — you repay 100% of your Child Benefit

This is a tax that reduces some or all of your Child Benefit through the Self Assessment system.

HICBC applies even if:

• the higher earner is not the one claiming
• you live together but are unmarried
• you are receiving pension or investment income

How HICBC Is Calculated

Income Between £60,000 and £80,000

You repay 1% of your Child Benefit for every £200 over £60,000.

Income Above £80,000

You repay all Child Benefit received.

Example Calculation

Parent earns: £65,000
Child Benefit for two children: £2,210 per year

Difference from £60,000 = £5,000
£5,000 ÷ 200 = 25
HICBC = 25% of £2,210 = £552.50

This must be paid via Self Assessment.

Why You Should Still Claim Child Benefit Even If You Repay It

Most parents don’t know this, but you should always claim Child Benefit even if HICBC reduces it to zero.

Here’s why:

1. You Receive National Insurance Credits

Claiming Child Benefit gives you NI credits until your child turns 12, which count toward:

• your State Pension,
• your National Insurance record,
• preventing gaps in your pension record.

This is extremely important for parents who:

• stop working temporarily,
• work part time,
• rely on benefits,
• or stay at home.

This was a major issue covered in OneShekel’s article on HMRC state pension tax confusion.

2. Child’s Record Is Established

Claiming helps:

• validate the child’s identity,
• support future passport applications,
• link HMRC records for benefits,
• assist with education and health applications.

3. Helps Future Claims

Universal Credit, Tax-Free Childcare, and other benefits often rely on Child Benefit records.

HMRC Updates for 2024–2025

HMRC has modernised Child Benefit systems to reduce errors and overpayments, using lessons from:

• State Pension coding changes
• Tax code update errors
• Universal Credit automation issues

Recent updates include:

• Raising HICBC threshold to £60,000
• New online portal for faster claims
• Real-time verification to reduce errors
• Easier corrections through the “Self Correction Period”
• Faster newborn registration linking

These changes aim to reduce overpayments and prevent common administrative mistakes.

National Insurance Credits

This is one of the most important reasons to claim Child Benefit.

You get:

• NI credits toward your full State Pension,
• Protection of your pension record,
• Coverage for up to 12 years per child,
• Prevention of gaps that could reduce your pension by thousands of pounds

Even high earners who repay HICBC should always claim the benefit, then repay via Self Assessment.

Child Benefit and Different Family Situations

Separated Parents

• The parent the child lives with should claim
• Only one parent can receive Child Benefit
• Maintenance payments do not affect eligibility

Grandparents or Kinship Carers

Carers can claim Child Benefit if the child lives with them.

Joint Claims

If parents live together, they must decide who claims.

Disabled Children

You may be able to claim Child Benefit plus:

• Disability Living Allowance (DLA)
• Additional top-ups under Universal Credit

Backdating Child Benefit Claims

You can backdate:

• Up to 3 months without any special reason
• More than 3 months only if HMRC made an error or caused the delay

Backdating increases immediate payments and can restore NI credits for the months missed.

Common Mistakes to Avoid on HMRC child benefits

1. Not Claiming Because of HICBC
   Many parents mistakenly stop claiming, losing their NI credits and future pension entitlement.

2. Not Knowing Who Should Claim
   Only one parent per household can claim, leading to disputes and delays.

3. Ignoring Self Assessment
   Failure to file Self Assessment leads to penalties, interest, and HMRC letters.

4. Continuing to Claim After Moving Abroad
   In some circumstances Child Benefit stops when you relocate.

Frequently Asked Questions

Can I claim if I’m an EU citizen or non-UK national?
Yes, if you have settled status, pre-settled status, or the right to reside.

Can I claim if I’m not the child’s parent?
Yes, if the child lives with you.

Does Child Benefit affect other benefits?
Not directly—but it supports Universal Credit calculations.

Can I avoid HICBC?
Yes: pension salary sacrifice, charitable donations, reducing taxable income, transferring income to your partner legally.

Do I need to repay if my partner earns over £60,000?
Yes — even if YOU are the one claiming.

Conclusion

Child Benefit remains one of the most important forms of support available to UK families. Despite the complexity introduced by HICBC, every parent should claim because:

• It is tax-free
• Payments help with raising children
• It protects your state pension through NI credits
• It supports other benefit applications

HMRC continues to modernise the system, but understanding these rules ensures you avoid penalties, maximise payments, and secure long-term financial benefits.

HMRC child benefit References

1. HMRC: Child Benefit Rates 2024/25
2. GOV.UK: High Income Child Benefit Charge
3. HMRC National Insurance Credits Manual
4. OneShekel.com HMRC Articles (Tax Codes, Pension, DWP, Child Credits)
5. GOV.UK: Claim Child Benefit