HM Revenue and Customs (HMRC) is sending letters to 1.5 million households on Friday to extend claims for £1,406.60 payments.
The government department is reminding UK households with teenagers that the deadline to extend their Child Benefit claim is looming and if claims aren’t extended, payments will automatically stop. Child Benefit can be claimed by parents or guardians who are responsible for raising a child under the age of 16, or under 20 if they stay in approved education or training.
But payments will stop on or after a child’s 16th birthday unless parents confirm their teenager’s plans. Parents of 16 to 19-year-olds have until August 31 to extend their Child Benefit claim if their teenager is staying in certain types of education or training after completing their GCSEs or National 5s.
HMRC has sent out around 1.5 million letters to remind households to act before the August 31 deadline to avoid losing out on annual payments worth £1,406.60, with these letters due to land on doorsteps from Friday, May 8.
HMRC is sending deadline letters to UK households to extend Child Benefit claims (Image: Getty)
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Following a 1.7% uplift at the start of the new tax year 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, representing an annual increase of £52 and £33.80 respectively.
As Child Benefit is paid every four weeks, under the new rates parents with one child can get £108.20 every four weeks, or £1,406.60 per year, while those with two children can get £69 every four weeks, or an additional £930.80 per year.
In total, this would give two-child households £2,337.40 from HMRC annually, but there’s no limit – other than the Benefit Cap – which means if you have three or four children, you could get even more.
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.”
Parents only need to extend thier Child Benefit claim 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.
Claimants who already know their teenager’s plans don’t need to wait for their letter to arrive as they can act now and extend their claim on the HMRC app or online at GOV.UK. The letters also include a QR code linking directly to HMRC’s digital service.
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 theirChild Benefit claim last year, with more than half doing so online or through the HMRC app.
With the new higher rates now in place, it’s a cash boost well worth having so parents are urged not to miss the August deadline or they will miss out on at least £1,460.60 per year.
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.
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).
Claimants can use the online Child Benefit tax calculator for an estimate and can pay the charge through their PAYE tax code using the HICBC digital service, or through Self Assessment.