How does the HMRC decide who gets child benefit in shared custody?
When separated parents cannot agree on who should claim child benefit, the decision falls to the HM Revenue and Customs (HMRC). The HMRC will consider the following factors in their determination:
- The child’s main residence: The HMRC will assess where the child spends the majority of their time and which parent is primarily responsible for their day-to-day care.
- The claimant’s status: If both parents apply for child benefit, the HMRC will typically award it to the parent who made the initial claim, unless there is a compelling reason to change the claimant.
- The child’s best interests: The HMRC will consider factors such as the child’s schooling, healthcare, and overall well-being when making their decision.
In cases where the child spends an exactly equal amount of time with each parent, and both parents apply for child benefit, the HMRC will carefully examine the individual circumstances to determine which parent should receive the payments. They take into account the factors above.
The Child Benefit Implications of Separation and Divorce
In the event that separated or divorced parents share care and residence of the child(ren), competing entitlements can arise for claiming child benefit. Parents are very much encouraged to work this out between themselves, but, in the event of disagreement between the parents post-separation an HMRC officer may decide the priority for entitlement. It is also important to note the interaction between child benefit and child maintenance (money paid by one parent to the other to help with the child’s everyday living costs). The relevant authorities presume that the person receiving the child benefit has primary responsibility for day-to-day care of the child and therefore will be the “receiving” parent for any child maintenance. But this can be challenged by evidence led from the parents, with the onus on the parent who wishes to disprove the presumption.
On 6 April 2024, it rose to: £25.60 a week for the eldest or only child, up from £24. £16.95 a week for younger children, up from £15.90.
If client does day-to-day care even when the child(ren) stay with their other parent:
Summary:
In situations where the child spends an exactly equal amount of time with each parent, and the parent’s cannot agree who is to receive the child benefit, HMRC will look at three different factors. One of which is the child’s main residence: The HMRC will assess where the child spends the majority of their time and which parent is primarily responsible for their day-to-day care.
If the client does not do the day-to-day care when the child(ren) are at their other parents:
The parent who claims child benefit is typically considered the primary caregiver for Universal Credit purposes.
If you can’t reach an agreement, you can both make a claim and let HMRC decide who will get the Child Benefit. There are complicated rules about who has priority but HMRC will usually give Child Benefit to the person the child lives with the most.
Summary:
Based on findings it would be up to HMRC to decide based on the three factors stated above. They would normally give it to the Primary care giver but it is not clear who that is if both parents did the day-to-day activities.