If you are a parent with children aged between 16 and 19 years old who are staying in education or training, don’t forget to extend your Child Benefit claims before 31 August 2025. HMRC are sending reminders to parents, as those who don’t extend their claims before the deadline risk losing out on up to £1,354 of Child Benefit per year.
Child Benefit beyond age 16
Child Benefit claims cease at the end of the month of August which follows the child’s 16th birthday, unless HMRC are told that the child is remaining in full time education or approved training. As long as that notification is made correctly, and the child continues to be eligible, Child Benefit can continue until they turn 20.
A digital service to extend Child Benefit claims is available on GOV.UK, or via the HMRC App.
What about the High Income Child Benefit Charge?
The High Income Child Benefit Charge (HICBC) results in higher-income families having to repay some or all of the Child Benefit received by their household each tax year.
Since 6 April 2024, the HICBC only applies where the higher earning parent or guardian in a household has adjusted net income of £60,000 or more, but the thresholds used to be lower. Parents and guardians who are unsure whether the HICBC will affect them may find HMRC’s Child Benefit tax calculator helpful.
It’s worth remembering you can be subject to HICBC if you’re temporarily separated from but still married to (or in a civil partnership with) the mother/father of your children in respect of Child Benefit they receive. Equally, HICBC can apply to the higher earner in a household if they live with a partner who receives Child Benefit in respect of children from a previous relationship. The Low Incomes Tax Reform Group have published further guidance on relationship changes and HICBC.
As a result of the HICBC, individuals or couples with a high-earning individual over the threshold may have stopped claiming Child Benefit completely. But claiming Child Benefit can be valuable for the lower earner in the couple as, if the claim is made by a parent or guardian who has little or no income of their own, it provides entitlement to State Pension credits. The solution to avoid paying the Child Benefit back under HICBC is to claim, but opt out of receiving the benefits.
For this reason, even parents who have opted out of receiving Child Benefit payments should still extend their Child Benefit claims.
This article reflects the position at the date of publication. If you are reading this at a later date you are advised to check that that position has not changed in the time since.
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