Child benefit is a government payment to parents and guardians of children under the age of 16, or under the age of 20 if they are still in full-time education. You can claim child benefit if you are:
A British citizen or have indefinite leave to remain in the UK
Living in the UK
Responsible for a child under the age of 16
You can also claim child benefit if you live abroad, but only if you are a British citizen and your child is a British citizen or has indefinite leave to remain in the UK.
How are child benefit payments taxed?
Child benefit payments are not taxed. This means that you will not have to pay any income tax on the amount of child benefit you receive.
What happens when you pay higher income tax?
If you pay higher income tax, you may have to pay back some or all of your child benefit payments. This is called the High Income Child Benefit Charge.
You will have to pay back some or all of your child benefit payments if your household income is over £50,000 per year. The amount you have to pay back will depend on your household income and the number of children you have.
Should child benefit payments be declared on your self-assessment tax return?
Yes, you must declare child benefit payments on your self-assessment tax return, even if the payments are in your partner's name.
Here are some additional tips for self-employed people and small business owners claiming child benefit:
Keep good records of your income and expenditure. This will help you to calculate your child benefit accurately.
Make sure you understand the eligibility criteria for child benefit. The criteria can change from year to year, so it is important to check the latest information.
Review your child benefit claim regularly. Your circumstances may change throughout the year, which could affect your eligibility for child benefit.
If you have any questions about child benefit, you can contact the Gov.uk helpline.
Child benefit payments can be a valuable benefit for self-employed people and small business owners with children. If you think you may be eligible for child benefit, you should apply as soon as possible.