In our latest tax tips email for accountants we said:
This week we take a look at the private residence relief and whether a minimum period of residence is necessary to secure the relief. We also take a look at the factors which enabled a livery business to qualify for business property relief. Finally, there is a reminder to update HMRC’s of the educational status of a child’s age 16 or over so that child benefit is not lost.
Below is just an extract from that email. To receive the full email when it is published each Thursday, simply follow the link on the right (or below, if you’re reading this on a mobile device)
Still entitled to child benefit?
Practitioners with clients in receipt of child benefit may want to remind them to update their child’s educational status if their child is age 16 or over and is continuing in full-time education or undertaking an apprenticeship. Child benefit can continue to be claimed in respect of teenagers aged 16 to 19 who are in approved education of training. This must be full-time (more than 12 hours a week) and will include study for A levels, Scottish Highers, NVQs up to level 3 and traineeships in England. However, it does not include higher education, such as study for a university degree or a BTEC Higher National Certificate. Approved training includes foundation apprenticeships.
If HMRC are not told that a child is staying in education or training, child benefit will crease automatically. Details can be updated through the taxpayer’s personal tax account.
Where a client (or client’s partner) is liable for the high income child benefit charge (which bite where income is at least £50,000 and claws back all child benefit once income reaches £60,000), it may be preferable to stop receiving the benefit than to receive it initially only to have to pay it back.