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Parents Earning Under £80K – You Could Be Missing Out on Cash!
If you or your partner earn under £80,000, you might be entitled to claim Child Benefit without losing as much of it to the High Income Child Benefit Charge (HICBC). The rules have changed, and many families who previously opted out should reconsider!
What’s Changed?
Previously, if you or your partner earned over £50,000, you had to start paying back Child Benefit through the High Income Child Benefit Charge (HICBC). This meant that many families earning above this threshold chose not to claim to avoid the hassle of repaying it through their tax return.
However, as of 6 April 2024, the income threshold has increased to £60,000, with the charge gradually applying up to £80,000. This means you can now earn more before the charge reduces your benefit – and some parents could reclaim thousands!
What This Means for You
- If your highest-earning partner earns under £60,000, you will receive full Child Benefit without any repayment.
- If your highest-earning partner earns between £60,000 and £80,000, you will only repay a portion of the Child Benefit instead of losing all of it.
- If your highest-earning partner earns over £80,000, the full amount will still be clawed back through the HICBC.
Examples
Example 1: Sarah and James have two children. James earns £58,000, and Sarah doesn’t work. Under the old rules, James would have lost some of their Child Benefit. But now, since he earns under £60,000, they can claim the full £2,212 per year tax-free.
Example 2: Emma and Tom also have two children. Tom earns £70,000, so some of their Child Benefit is still reduced, but not all of it. Under the new rules, they will receive around £1,106 instead of losing it entirely.
Should You Start Claiming Child Benefit Again?
If you previously opted out of Child Benefit, now is the time to reconsider. Even if you still have to pay some back:
✅ It helps protect your National Insurance record, ensuring you qualify for full State Pension later.
✅ You could still keep a portion of your Child Benefit instead of losing it all.
✅ If your income has dropped below £80,000, you might now qualify for more.
How to Claim
If you’ve never claimed before or previously opted out, you can restart your claim via HMRC’s website or by filling out a CH2 form.
💰 Don’t leave money on the table! Check if you’re eligible and start claiming today.
