HMRC urges Brits to claim £1,300 household boost 'as soon as they can'

Households are being warned not to miss out on a huge cash 'boost' following a major shakeup. It comes as HM Revenue & Customs (HMRC) has confirmed a 1.7 per cent increase to Child Benefit.

Next week (April 7), eligible families will start to receive £26.05 per week (£1,354.60 a year) for the eldest or only child, and £17.25 per week (£897 a year) for each additional child. By claiming Child Benefit, you will also get National Insurance credits which count towards your state pension.

The financial aid helps Brits cover the cost of those raising children under the age of 16, or those aged under 20 that remain in approved education or training after secondary school. As previously reported, this can include A-Levels, NVQs or even home education - but doesn't apply to University degrees or BTEC qualifications.

"Extra pounds count and Child Benefit can give your household budget a boost," said Myrtle Lloyd of HMRC. "Claiming online or managing your Child Benefit payments via the HMRC app is quick and easy so, if you haven't already, go to GOV.UK to start your claim today."

Child Benefit, which is currently claimed by more than seven million families, can be claimed 48 hours after a child's birth is registered, or once a child comes to live with you. However, it can only be backdated up to three months, prompting HMRC to encourage families to claim the benefit 'as soon as they can after their baby is born'.

Families will need to create an online account with HMRC to put in their claim for Child Benefit. According to GOV.UK, you will need your:

• Child's birth or adoption certificate.
• Bank details.
• National Insurance number for themselves and their partner, if they have one.
• Child's original birth or adoption certificate and passport or travel document, for children born outside the UK.

If approved, you'll start to receive Child Benefit every Monday or Tuesday. This may often be impacted by Bank Holiday dates, including Easter Monday.

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Last year, the government increased the High Income Child Benefit Charge (HICBC) from £50,000 to £60,000. This means if your or your partner's 'adjusted' income exceeds £60,000 in the 2024-2025 tax year, you will have to pay some of the benefit back. If you earn over £80,000 a year - the amount of tax you have to pay will wipe the Child Benefit completely.

'Adjusted net income' is your total taxable income before any allowances and doesn't include things like Gift Aid. Your total taxable interest does include interest from savings and dividends.

"If your adjusted net income is over the threshold and so is your partner's, then whoever has the higher income is responsible for paying the tax charge," added GOV.UK. "'Partner' means someone you're not permanently separated from who you're married to, in a civil partnership with or living with as if you were."

For example, earning £65,000 in 'adjusted net income' in the 2024-2025 tax year means you'll receive £1,354.60 a year after April 7. However, you'll need to pay a tax bill of around £332. You can use the government's calculator to work out exactly how much tax you'll be charged.

If you want to opt out of getting Child Benefit payments (because you earn over £80,000 for example) it's important to still fill in the government form and state you don't want to get payments. This will help ensure you get National Insurance credits, which count towards your State Pension, and means your child will get a National Insurance number without them having to apply for one.

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