Important Update: Child Benefit Changes for Parents of Teenagers
If you have employees or clients with children aged between 16 and 19 years old, there is an important deadline approaching that could impact their entitlement to Child Benefit — worth up to £1,354 a year.
HMRC is currently writing to parents to remind them that they must confirm if their child is continuing in full-time education or approved training by 31 August 2025. Without this confirmation, Child Benefit payments will automatically stop.
At Exchange Accountants, we want to ensure our clients and their employees stay informed and don’t miss out on valuable entitlements.
How to Extend Child Benefit Claims
Parents who receive a letter from HMRC will find a QR code that links directly to the online service, making it quick and easy to extend their Child Benefit claim. Alternatively, they can search “extend Child Benefit” on GOV.UK and sign in to their online HMRC account.
It is crucial that parents respond by the 31 August 2025 deadline if their child is continuing in full-time non-advanced education (such as A-levels, T-levels, or equivalent qualifications) or approved training. If HMRC does not receive confirmation, payments will stop automatically, even if the child remains in education.
You can view full eligibility details and guidance on the GOV.UK website.
High Income Child Benefit Charge: What’s Changed
Even if parents have opted out of receiving Child Benefit payments previously due to the High Income Child Benefit Charge (HICBC), they still need to extend their claim if their child remains eligible.
From April 2024, the HICBC thresholds have changed. Now:
The income level at which the charge begins has risen to £60,000.
The charge applies fully when income reaches £80,000.
Because of these increases, many families who previously opted out may now find it worthwhile to receive Child Benefit payments again. Parents can use the Child Benefit tax calculator on GOV.UK to estimate how much benefit they are entitled to and any potential tax charge they may need to pay.
It is quick and easy to opt back in to Child Benefit payments or make a new claim using the HMRC app or online account.
How Exchange Can Help
While this is a personal matter between individuals and HMRC, we encourage our clients — especially business owners with employees — to share this important information within their teams.
Child Benefit not only provides direct financial support but also ensures parents receive National Insurance credits that count towards their future State Pension.
If you have any queries about how the changes to income thresholds or Child Benefit claims could impact your wider financial planning, our team is here to help guide you.
Need personalised advice?
Get in touch with Exchange Accountants today.
