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Child Benefit Boost! Great News for Families

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Are You Eligible for More Support?

Recent changes to the Child Benefit scheme could mean more money in your pocket. Here at SN Financial, we’re passionate about helping families navigate financial matters with confidence. So, let’s break down this update and see if it applies to you.

Childs playroom furniture and soft furnishings child benefit changes

What’s Changed?

As of April 2024, the income threshold for claiming Child Benefit has increased. This means families who previously stopped receiving the benefit due to a rise in income may now be eligible again. Additionally, the way the High-Income Child Benefit Charge works has been adjusted, resulting in potentially less tax being owed on your Child Benefit payments.

What is Child Benefit?

This government program provides weekly financial assistance to families with qualifying children. It’s a valuable resource to help with the ongoing expenses of raising your little ones.

In April 2024, the government increased the tapering threshold. Now, the highest earning parent will get a tax charge of 1% of the Child Benefits for every £200 they earn from £60,000 to £80,000.

April 2023April 2024
Highest salary earnings£65,000.00£65,000.00
Child benefit before tax£2,212.60£2,212.60
Tax£2,212.60£553.15
Child benefit after tax£0.00£1,659.45

Let’s go back to that example and assume in 2023, the highest earning parent got a new job and earnt £65,000 per annum. The £2,212.60 Child Benefit they receive would eventually all be taxed back from them, so they cancelled the payments with HMRC.

However now, under the new rules, they can start reclaiming the Child Benefit because they are £5,000 over £60,000 which is 25 lots of £200 and would therefore incur a 25% tax charge. Overall, they will receive the £2,212.60 in total and only be taxed £553.15, leaving £1,659.45.

Full details of the Child Benefit can be found at: https://www.gov.uk/child-benefit

Who Can Qualify?

Here’s a quick rundown of eligibility:

  • You have children under 16 years old, or under 20 if they’re in approved education.
  • Your household income falls within the new, higher limits.

Unsure if You Qualify?

While we can’t offer specific financial advice, we highly recommend checking the latest government guidelines or reaching out to HMRC directly. The resources below can help you determine your eligibility and potential tax implications:

Don’t Miss Out on Valuable Support!

This update may mean a significant financial boost for your family. We encourage you to explore your eligibility and take advantage of this helpful program.

Need a Listening Ear? We’re Here to Help!

At SN Financial, we understand that navigating financial matters can be complex. If you have any questions or simply want to discuss your options, please don’t hesitate to contact us. We’re always happy to provide a helping hand.

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