Top 5 This Week

Related Posts

HMRC confirms extra £49.40 cash boost for households after Budget | Personal Finance | Finance

HM Revenue and Customers (HMRC) has confirmed an extra £49.40 annual cash boost for UK households claiming Child Benefit from April.

Child Benefit can be claimed by parents or guardians who are responsible for raising a child under the age of 16, or under 20 if they stay in approved education or training. Only one person can claim the benefit for a child, but there’s no limit to how many children you can claim for. In the current tax year, Child Benefit is worth £27.05 per week for the eldest or only child and £17.90 per week for each additional child.

Under these rates, parents with one child can get £1,406.60 worth of Child Benefit payments from HMRC per year, while those with more children can get an additional £930.80 per year. But these payments are due to rise from April, giving households an annual cash boost of at least £49.40.

HMRC has confirmed that in the 2027 to 2028 tax year which begins on April 6, Child Benefit claimants can get £28 per week for the eldest or only child. This amounts to £1,456 in Child Benefit payments per year – an extra £49.40 per year on current rates.

As for each additional child, rates will rise to £18.55 per week which will give claimants £964.60 annually – an extra £33.80 per year on current amounts.

The new rates were announced by the tax office following Chancellor Healey’s Budget speech on Wednesday, October 28, where he set out the government’s spending plans for the year ahead.

The Budget 2026 document published by The Treasury also sets out HMRC plans to automatically offset Child Benefit overpayments, in a move aimed at simplifying how the High Income Child Benefit Charge (HICBC) is paid.

The Treasury said: “HMRC will automatically offset Child Benefit overpayments against the High Income Child Benefit Charge (HICBC), simplifying administration for affected customers by reducing unnecessary payment and repayment transactions. This will be introduced through legislation in Finance Bill 2026-27 with retrospective effect from HICBC’s introduction in January 2013.”

Under current rules, where a Child Benefit claimant or their partner has an individual adjusted net income of more than £60,000, the higher earner may be subject to pay the HICBC.

The charge sees claimants pay back 1% of their Child Benefit for every £200 earned over £60,000. If you earn more than £80,000 then you must pay it all back.

Claimants can choose to pay the tax charge either through their PAYE tax code using the HICBC digital service, or through Self Assessment.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Popular Articles