HMRC warning over key deadline – act now or you risk losing cash | Personal Finance | Finance
More than one million parents could lose out on hundreds of pounds if they fail to meet the deadline to renew their Child Benefit claim.
HM Revenue and Customs (HMRC) is sending out letters to 1.4 million parents reminding them to renew existing claims, which can be worth up to £1,331 a year per child.
Child benefit payments automatically stop on August 31 or after the child has turned 16 unless parents confirm they are continuing in education.
Parents can get £25.60 a week for their first child and £16.95 a week for each additional child – working out at £1,331 or £881 a year.
If a parent is automatically opted out of child benefit, they will need to apply again within three months in order to avoid losing out on any payments.
This is because HMRC will only backdate payments for three months – so a six month delay could cost parents around £300 for an only child.
The tax office came under fire on Monday after a glitch meant that 577,000 parents did not receive their payments on time leaving many without funds to buy food and pay for essentials.
HMRC insists it has now fixed the problem and promised the payments will arrive in bank accounts today.
Child benefit is available to those who look after children under 16 or under 20 but in approved education or training.
You can claim child benefit in full until either you or your partner earn an income over £60,000.
After that, child benefit is clawed back at a rate of 1 percent for each £200 earned over this threshold until the benefit is fully withdrawn when the higher-income partner earns £80,000 or more.
The complex regime means you must register for self-assessment in order to pay the tax, known as the High Income Child Benefit Charge.
The letters sent out by HMRC contain a QR code which, when scanned, will lead the parents to the gov.uk to update their claim online.
If parents have not received a letter by July 17, then they can extend their child benefit claim online, the tax office said. However they must do this before the payments automatically stop at the end of August or after their child has turned 16.
Myrtle Lloyd, HMRC’s director general for customer services, said: “Child Benefit is an important financial support for many families, so make sure you don’t miss out on any payments if your teenager intends to continue approved education or training.
“You can quickly and easily extend your claim online or via the HMRC app, just search ‘Child Benefit when your child turns 16’ on GOV.UK.”
