HMRC warning – risk losing £1,406 worth of payments | Personal Finance | Finance

HMRC have started sending out letters to remind parents to update their Child Benefit claims. They risk losing payments of at least £1,406.60 a year if they fail to act before the August 31 deadline.

Around 1.5 million households with children approaching or over the age of 16 will begin receiving the letters. Parents whose children plan to continue in education, including school, college or qualifying training programmes, must notify the HMRC in order to avoid their Child Benefit payments stopping automatically. This is because the benefit stops on August 31 after a child’s 16th birthday unless they remain in approved education or training.

The Child Benefit increased by 1.7% on April 6, taking it up to £27.05 a week for the eldest or only child in a household. Meanwhile, parents receive £17.90 a week for each additional child.

The payment is issued every four weeks, meaning families with one child receive £108.20 during each cycle. This amounts to £1,406.60 over 12 months.

Meanwhile, families with two children receive an additional £69 every four weeks, increasing annual support by £930.80. Although overall payments are subject to the Benefit Cap, there is no limit on the number of children parents can claim for.

Myrtle Lloyd, HMRC’s chief customer officer, said: “Child Benefit is a real financial boost for families, so if your teenager already knows they’re staying in education or training after their GCSEs or National 5s, you don’t need to wait for our letter. You can extend your Child Benefit claim today in minutes via the HMRC app or online at GOV.UK.”

Last year, 874,000 parents extended their Child Benefit claims with more than half completed online or through the HMRC app. The letter includes a QR code linking directly to HMRC’s online service.