HMRC Urges Parents to Claim Child Benefit Promptly, Citing Missed Entitlements
His Majesty's Revenue and Customs (HMRC) has issued a reminder to new parents regarding the prompt claiming of child benefit, highlighting that significant sums are being forfeited due to delays.
Understanding the Benefit and Claim Process
The current child benefit allowance stands at £25.60 per week for the eldest or only child, and £16.95 for each additional child. This translates to over £1,400 annually for a family with two children. HMRC has stated that a substantial number of parents fail to claim this entitlement until it is too late to receive the full amount.
New parents can initiate a claim at any point after a child's birth. However, retrospective payments are capped at three months, meaning any delay beyond this period results in a permanent loss of benefit for the preceding months.
HMRC's director general for customer services, Myrtle Lloyd, emphasised the importance of claiming as soon as possible, particularly for the first child, to avoid missing out on financial support. The claim process also automatically registers the child for a National Insurance number, a crucial step for future employment and state pension entitlements.
Impact of High Income Child Benefit Charge
Parents or partners earning over £50,000 annually are subject to a High Income Child Benefit Charge (HICBC). For those earning over £60,000, the benefit is entirely withdrawn via a tax charge. Despite this, HMRC still advises all eligible parents to complete the child benefit claim form, even if they choose to opt out of receiving payments due to the HICBC.
The act of claiming, regardless of payment receipt, ensures that the claimant receives National Insurance credits, which contribute towards their state pension. This is particularly relevant for individuals who may not be in paid employment, such as those on parental leave, ensuring their pension contributions are not interrupted. Claims can be submitted online or via post, requiring the child's birth certificate.
