You may have decided not to claim child benefit in earlier years because all that happened was that you just had to give it back. That was the case if one of you had income over £60,000.

The increase in threshold means that you should now review your decision.

In the short term, there is an interim charge to the thresholds. We are promised an overhaul of the charge in the next year. An election is coming. This overhaul may or may not happen.

So, you need to make the most of the interim measures, because they could be around for a while.

From 6 April 2024, the adjusted net income threshold at which child benefits will begin to be withdrawn will increase from £50,000 to £60,000.

The benefit was previously withdrawn on a tapered basis in an income band between £50,000 and £60,000. This will now happen £60,000 and £80,000.

If one of you has income above £80000 the tax charge will equal the amount of the child benefit received.

By April 2026, the government plans to introduce a system where benefit assessments will be made on a household basis.

So, if the highest earner of a couple has an income of less than £80,000, claim your entitlement to child benefit. The worst that can happen is that you have to pay it back. Even in this scenario, you get an interest free loan to utilise in the interim.