Self Assessment child benefit: what you need to know

Understanding your Self Assessment child benefit obligations is crucial. Child benefit is a great tax-free benefit for parents, but if you or your spouse earn over £60,000, you might need to pay some or all of it back – this is called the High Income Child Benefit Charge.

How much is the Child Benefit (2024/25)?

• £25.60 a week for your eldest child
• and £16.95 a week for each of your other children

Use this child benefit charge calculator to see how much you’re entitled to, and if you need to pay any of it back.

Who needs to file the tax return and pay?

Whoever has the higher income: either you or your partner.

It doesn’t matter who actually received the Child Benefit in their bank account.

You’ll need to:

• Register for Self Assessment (you can do it online here) by October 5th following the tax year when you received the Child Benefit
• Submit the Self Assessment before the January 31st deadline
• Pay back the Child Benefit as income tax

Filing a Self Assessment child benefit tax return ensures you meet these requirements and avoid penalties.

How to manage your Self Assessment child benefit obligations

To stay compliant and stress-free, managing your Self Assessment child benefit is essential:

• Keep track of your earnings to determine if the high income child benefit charge applies.
• Register for Self Assessment before the deadline.
• Use a tax calculator or professional advice to avoid underpayment.

Should I still claim Child Benefit if I have to pay it back?

In short, yes.

The advantages of claiming Child Benefit:

• You get National Insurance credits – which count towards your state pension (very important if you’re on a low income)
• Your child will also receive a National Insurance number right before they turn 16 – they won’t need to apply for one themselves
• Your Child Benefit payments are “protected” in case your income drops (because of unemployment, etc.)

What you can do:

• Carry on getting Child Benefit and pay any tax charge at the end of each tax year
• Stop getting Child Benefit entirely – here is how you do it,
• Still fill in the Child Benefit claim form but choose to not get the Child Benefit payments (the best option)

With the third option you get all the benefits but you don’t need to worry about filing a tax return or paying the High Income Child Benefit Charge.

If you’ve stopped Child Benefit, you can restart it at any time. Managing your Self Assessment child benefit obligations can help you maximise these advantages without unnecessary stress.