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Child Benefit in Northern Ireland

UK Child Benefit is a 4 weekly payment made to anyone bringing up a child under 16 or young person in approved education or training. You do not need to be the parent of the child or young person to qualify, but you must be responsible for them. For further information please visit – HMRC – Child Benefit

Incomes over £50,000

Individuals in receipt of UK Child Benefit, with incomes over £50,000 may be subject to a UK Child Benefit tax charge. Their taxable income will be charged 1% of their Child Benefit payment for every £100 of income they earn between £50,000 and £60,000. The charge is paid via a Self-Assessment tax return each year. If the income is over £60,000 the tax charge will be equal to the full amount of UK Child benefit. For further information visit the HMRC website

High earner options:

Close the claim for Child Benefit
Continue to receive Child Benefit payments and submit an annual Self-Assessment tax return
Apply for Child Benefit (or keep an existing claim open) and opt not to receive payments

Option 3 avoids the tax charge and the need to submit an annual tax return and it also protects the parent’s entitlement to a National Insurance credit (carer’s credit) which can count towards their State Pension.

Any decision not to accept the UK payment due to high incomes is based on a UK tax decision, it will not result an increase of Irish Child Benefit Supplement payment.

Cross-border issues

Under EU Social Coordination rules (and very similar post-Brexit Convention between Ireland and the UK) a cross-border worker is usually linked to the social security system where they work, and that system is then responsible for their social security payments (if they meet the criteria). As a result cross-border workers usually find that their country of employment is responsible for their Family Benefits even if their family reside across the border.

In some cases cross-border workers find that they are entitled to Family Benefits both where they work and where they live. In these cases the authorities will take into consideration where each parent works, and where the children live.

Whatever the scenario the UK and Irish authorities will jointly decide which jurisdiction has primary responsibility and which has secondary responsibility.

The jurisdiction with primary responsibility will pay the full award but if Family Benefits are paid at a higher rate across the border, then the secondary jurisdiction will consider a Supplement payment (often referred to as a top-up) which is the difference between payments in the two jurisdictions.

For example:

€140 per month – full rate of Irish Child Benefit for one child

Less

€107 per month – full rate of UK Child Benefit for one child

= a Supplement Payment of €33 per month (subject to exchange rates etc)

The social security co-ordination rules aim to ensure that the family can claim the fullest amount possible.

Where to apply

“Cross border workers must apply for Child Benefit in the country where they work. Unless one parent is employed or is self-employed on each side of the border, then they should apply in the country of residence of the children.” Source – https://www.gov.ie/en/publication/62b5c5-operational-guidelines-child-benefit/.

If you are in any doubt about where to apply , North or South, you should apply in both jurisdictions clearly stating that it’s a cross-border application. This will ensure you apply within the 12 month timeframe. The UK and Irish authorities will jointly consider the claim and decide which is responsible.

Child Benefit in Northern Ireland

Cross-border issues

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