HMRC stopping £117.22 monthly payments from September | Personal Finance | Finance
Parents of 16-19 year-olds are being reminded to extend their Child Benefit claim by August 31 (Image: Getty)
HM Revenue and Customs (HMRC) will stop £117.22 monthly payments to UK households claiming Child Benefit from September if they miss a looming deadline.
The government department has warned that parents of 16 to 19-year-olds must extend their Child Benefit claim by August 31 if their teenager is staying in certain types of education or training after their GCSEs or National 5s, or payments will automatically stop, meaning no further monthly payments from September onwards. HMRC sent out around 1.5 million reminder letters to households last month, but said parents don’t need to wait for this as its digital service for extending opened on April 1. As such, those who already know their teenager’s plans can act now.
Following a 3.8% uplift on April 6, Child Benefit is now worth £27.05 per week (up from £26.05) for the eldest or only child and £17.90 per week (up from £17.25) for each additional child. This represents an annual increase of £52 and £33.80, respectively.
The tax office has confirmed payments will automatically stop if people affected don’t act. (Image: Getty)
Under the new rates, parents with one child can receive £1,406.60 in Child Benefit payments from HMRC per year, which amounts to around £117.22 per month on average over a 12-month period.
But those with two children will get even more, and as there’s no limit for the number of children you can claim for – other than the Benefit Cap – it’s a cash boost that is well worth having, so parents of teenagers are urged not to miss the August 31 deadline or they’ll lose out on around £117.22 per month.
Child Benefit can continue for teenagers studying full-time in non-advanced education, or on unpaid approved training courses, and according to HMRC, 874,000 parents extended their Child Benefit claim last year, with more than half doing so online or through the HMRC app.
Failure to extend claims by August 31, either online via the HMRC website or through the HMRC app, will mean payments will automatically stop on this date, or after a child’s 16th birthday, unless parents confirm their teenager’s plans.
In cases where a Child Benefit claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner may be liable for the High Income Child Benefit Charge (HICBC).
In a reminder to parents, 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.
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Parents only need to act if their teenager is starting a new course or qualifying training in September. Those already partway through a course previously notified to HMRC don’t need to do anything.
Claim extensions can be made on the HMRC app or online at GOV.UK. The letters sent out by HMRC also include a QR code linking directly to the digital service.
