Time to check child benefit
If your 16-year-old is in full-time education, tell the taxman, says Paul Lewis.
If you get child benefit and your child is sixteen (or almost 16)… beware! It will stop on 31st August unless you apply to keep it going.
Child benefit is £26.05 a week (£1,354.60 a year) for the first child and £17.25 (£897 a year) for each other child. It is tax-free as long as both your income and your partner’s income is less than £60,200 a year each. Child benefit is paid from birth until the age of 19 if a child is in full-time education. Once they reach 16, however, the benefit will stop unless you inform HMRC they are in full-time education. Nowadays almost all children are. But this rule dates back to the start of child benefit, in the late 1970s, when many children left school at 16 to go into work. If they did, their parent could no longer get child benefit and it still automatically stops on 31st August after their 16th birthday unless the parent confirms they are in full-time, unpaid education.
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You should be sent a letter in the school year your child reaches 16 reminding you to confirm they will still be in education or training. It is very important not to ignore it. If you do not get a letter, perhaps because you have moved or it was misdirected, you can still let HMRC know.
Most sorts of full-time education or training are acceptable, even home-schooling in most cases. Only the parent or another person who claims the child benefit can inform HMRC, and it normally has to be done online using their Government Gateway account.
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If your or your partner’s income is £60,200 or more then extra tax must be paid to take back some of the child benefit. This limit was raised from £50,100 in April 2024. So if you have given up child benefit in the past because of your income you may be able to get it back now. You will be better off despite the tax charge unless you or your partner’s income is £80,000 a year or more when the tax charge equals the amount of the child benefit.
For more information, search gov.uk for ‘child benefit 16’ or ‘child benefit tax’.