On this episode of the Money Confidence podcast, Sarah and Georgia talk about Child Benefit.

KEY TAKEAWAYS

Child Benefit is a benefit for people who have children. You can claim for each child under 16 or under 20 if they are in approved full-time education or training.

This tax year, which is 2022/23, your eldest or only child will get £21.80 a week and all subsequent children will get £14.45 a week.

If you or your partner earn over £50,000 a year then you may be subject to he high income Child Benefit tax charge. The amount of the charge depends on how much over £50,000 your adjusted net income for income tax is. If either you or your partner earn over £60,000 a year then you'll have to repay all your Child Benefit.

Claiming Child Benefit will ensure you receive National Insurance credits towards your State Pension so if you're not working make sure you claim, even if your partner earns more than £60,000 a year and you decide not to take the payments.

BEST MOMENTS

'Child Benefit is usually paid every 4 weeks on a Monday or Tuesday. You can have the money paid weekly if you are a single parent or getting certain other benefits such as Income Support.'

'There's a form called the CH2 claim form which is available on the government website, which you need to fil out and send to the Child Benefit office.'

'There's not a specific time your claim has to be in by but Child Benefit can only be backdated for up to 3 months. It can take up to 16 weeks to process a new Child Benefit claim.'

'The payments are tax-free as long as neither parent or carer earns more than £50,000 a year.'

'If you're not working or earning enough to pay NI contributions then claiming Child Benefit until your youngest child is 12 will give you NI credits which count towards your State Pension.'

'Some 500,000 people now have to fill in a tax return purely because of Child Benefit.'

'The 50,000 threshold hasn't increased since 2013 which means more and more families will be affected as incomes increase.'

'Anything you pay into your pension is knocked off your income before the charge is assessed.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

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