There is an extended claim that is allowable where the child is between 16 and 19 years of age and are staying in full-time education.
Normally, Child Benefit ceases on the 31 August on or after the child’s 16th birthday if they leave education or training. However, it can be extended where HMRC are told that the child is staying in approved education or training. See guidance on Gov.UK at ‘Child Benefit when your child turns 16’ which explains that the person claiming Child Benefit must confirm online of via HMRC’s app if the child is remaining in approved education or training. If employees cannot use the online service they can contact HMRC by phone or post.
Extending Child Benefit Claims
Employees in receipt of Child Benefit will receive a letter from HMRC advising that Child Benefit can be extended. The letter will contain a QR code which will link to the digital service on Gov.UK (or they can search 'extend Child Benefit' and sign into their online account).
Importantly, if parents do not tell HMRC by 31 August 2025 that their child is staying in full time non-advanced education or approved training after age 16, their Child Benefit will stop. Parents can check eligibility on GOV.UK.
High Income Child Benefit Charge (HICBC)
The HICBC applies if the claimant or partner have income over the ‘adjusted net income’ threshold. Where this applies, the claimant can choose either to:
- Get Child Benefit payments and pay any tax charge at the end of each tax year; or
- Opt out of getting payments and not pay the tax charge
If claimants have opted about because there is a HICBC charge that reduces the Child Benefit to £0, they still need to act and extend their claim. The amount parents can earn before they need to pay the HICBC has increased to between £60,000 and £80,000.
Employees who believe they may be impacted are being urged to use the online Child Benefit tax calculator to get an estimate of how much benefit they will receive and what the charge may be. Importantly, if they have previously opted out, HMRC are advising that it may be worthwhile for them to opt back into payments or make a claim if they haven’t done so before.
