Play all audios:
HOWEVER, THE BENEFIT IS NOT AS SIMPLE AS IT SEEMS. IF YOU OR YOUR PARTNER EARNS LESS THAN £60,000 PER YEAR, YOU CAN CLAIM THE FULL AMOUNT OF CHILD BENEFIT. BUT IF ONE OF YOU EARNS OVER
£60,000, YOU HAVE TO PAY SOME OF THE BENEFIT BACK 11:47, 21 Apr 2025Updated 11:52, 21 Apr 2025 A warning has been issued to Child Benefit claimants as they could potentially face hefty fines
if they fall foul of the benefit rules. Child Benefit is cash paid to parents or other people who are responsible for bringing up a child by HMRC. The money is available to anyone who has
"parental responsibility" over a child under the age of 16 - or 20 if they are in full-time education. The cash is the government's way of acknowledging the extra costs
involved in raising a child, and it applies to every country in the UK. As of April 6, Child Benefit payments sit at £26.05 a week - which equates to £1,355 a year - for the eldest or only
child and £17.25 a week - or £897 a year - for each additional child. According to the latest data, more than 7.65million households claim Child Benefit. However, it's not as simple as
it seems. If you or your partner earns less than £60,000 per year, you can claim the full amount of Child Benefit. But if one of you earns over £60,000, you have to pay some of the benefit
back. Under the rules, you pay it back at a rate of 1% for every £200 you earn over £60,000 - this is known as the High Income Child Benefit Charge (HICBC). Earn over £80,000 and you'll
need to pay back 100% of it - meaning you don't get anything. To pay back the benefit, you currently need to submit a self-assessment tax return. Article continues belowREAD MORE:
Topshop and Topman shares major high street store update and says 'in August'READ MORE: DWP sending pensioners letters about income boost worth over £470 a year GET THE BEST DEALS
AND TIPS FROM MIRROR MONEY WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special
offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
NEWSLETTER: Or sign up to the Mirror's Money newsletter here for all the best advice and shopping deals straight to your inbox. However, under changes announced in the Spring Statement
this year, households will soon be able to pay the charge directly through their tax code. Once registered with HMRC, parents will be able to choose to have their HICBC collected through
their company payroll, meaning they’ll no longer need to file a return to report Child Benefit. The changes will take effect this summer, and HMRC will contact affected families when the new
digital service launches. JOIN MONEY SAVING CLUB'S SPECIALIST TOPICS For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds
further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the
following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. As these changes don't come in
until the summer, households will need to make sure they are not caught out. In a blog post detailing the changes set for the benefit this year, the consumer group Which? warned that if you
don't repay your Child Benefit, you could be charged a penalty and interest on what you owe from the day payment was due. Fines can be up to 30% of what you owe HMRC in Child Benefit
payments, and late payment interest on taxes now sits at 8.5%. This is the highest level it has ever been. If you owe several years of payments, what you owe could end up being quite
expensive. An investigation from Which? found that some parents were forced to pay back multiple years' worth of payments. One parent was forced to repay six years' worth of Child
Benefit payments, although they did not share how much they owed. Another parent had to repay two and a half years of Child Benefit payments, which were worth £2,700 in tax charges and
£4,500 in late filing penalties. According to HMRC data, the number of families claiming Child Benefit has fallen to the lowest level since 2003. According to the consumer group, this
coincides with the introduction of the High-Income Child Benefit Charge. HMRC's most recent estimates cover the 2021/22 tax year, which saw 390,000 individuals pay a total of
£450million of HICBC liability. SIGN UP TO MIRROR MONEY'S NEWSLETTER FOR THE LATEST ADVICE AND NEWS From universal credit to furlough, employment rights, travel updates and emergency
financial aid - we've got all of the big financial stories you need to know about right now. Sign up to our Mirror Money newsletter here. Article continues belowREAD MORE: ‘Luxurious’
hanging egg chair that’s perfect for outdoor relaxing hits sale with £150 off