UK households are being urged to act when they get a HMRC letter this month.
HMRC is sending letters to parents (Image: Getty)
HMRC is sending letters to millions of parents this year warning them that they could lose benefits worth anything from £1,354 a year to £2,251 or more depending on how many kids they have.
The taxman is writing to those currently claiming Child Benefit to tell them they need to extend their claim. Child Benefit currently pays £1,354 a year for anyone with one child, with an additional £897 to those with two children, or £2,251, then increasing by an additional £897 for every further child, limited only by the overall benefit cap on households. But payments for Child Benefit are automatically stopped on August 31 or after the child turns 16, unless parents actively renew their claim because the child is continuing in education.
Any parent of a child continuing in education after their GCSEs has until August 31 to tell HMRC, or their payments will be stopped.
The benefits will then continue to be paid until the child reaches the age of 19 if they are enrolled in an apprenticeship programme or one of various educational schemes including A Levels, an International Baccalaureate, T Levels, NVQs or a pre-apprenticeship.
HMRC is sending the letters out now, and will continue to send them throughout June until July.
Alternatively, you can go to gov.uk to extend your claim or use the HMRC app.
Gov.uk says: “You’ll normally still qualify for Child Benefit if your child is under 20 and they stay in approved education or training.
“You can apply for Child Benefit to continue for 20 weeks if a 16-year-old or 17-year-old leaves education or training and registers with either: a government-sponsored careers service, or the armed services.”
Of course, Child Benefit is also capped by income. Any parent who claims must be earning under £60,000 a year to get the full amount. Any earnings over £60,000 cause the benefit to be reduced proportionately until £80,000, where the benefit is withdrawn entirely.
One ‘unfairness’ of the system is that it does not take into account a partner’s income – so, for example, two people earning £59,999 each can claim the full Child Benefit, but one person earning £60,000 will start to lose the benefit.
