HMRC has issued a warning to some taxpayers who may be missing out on a certain benefit.
HM Revenue and Customs (HMRC) is encouraging those earning less than £80,000 per year to check if they are missing out on cash benefits. In particular, many could be failing to claim Child Benefit.
In a recent update, HMRC’s official X account said: “If you earn under 80k and haven’t claimed Child Benefit yet, it could be financially worth your while. You or your partner can now earn up to £60k before you start paying the High Income Child Benefit Charge.”
As reported by the Liverpool Echo, families are being urged by the tax authority to submit their claims either online or through the HMRC mobile app. The purpose of Child Benefit is to assist with the costs of raising children, open to all parents and caregivers in charge of minors.
This scheme, run by HMRC, provides regular payments for each child until they turn 16, or up to 20 if they remain in full-time education or approved training. Importantly, claiming Child Benefit can also add to one’s National Insurance record, aiding future State Pension eligibility.
At present, families receive £26.05 weekly for the first child, an annual contribution of £1,354.60, with further children adding £17.25 to the weekly budget. As such, a family with two kids would see £2,251.60 a year, and a three-child household £3,148.60.
Under the High Income Child Benefit Charge regulations, benefits progressively diminish when an individual’s income reaches £60,000 and are completely withdrawn for those earning £80,000 or more.
If you or your partner earn £60,000 or less per annum, you’re eligible to claim the full Child Benefit amount, provided the child lives with you, or if you contribute a similar weekly sum towards their upkeep. Only one parent or guardian can make a claim for each child.
You’re qualified to claim Child Benefit 48 hours after registering your child’s birth, or once a child starts residing with you, and it can be backdated for up to three months. You can apply online, by post, or via phone, and you’ll need the child’s birth or adoption certificate along with your bank details for payments.
You’ll also need to provide your National Insurance (NI) number, and your partner’s NI number if applicable. The Child Benefit threshold is determined based on one parent’s earnings, not the combined household income.
For further information, visit the Government website here.