HMRC has issued an urgent warning to parents to opt in to a benefit worth £1,355 a year after big change.
You get child benefit if you’re responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training.
HMRC has issued a warning to help parentsGetty - ContributorThe payment is used to help parents cover the costs of childcare.
Parents receive £26.05 a week or £1,355 a year for their eldest or only child and £17.25 a week or £897 a year for each additional child.
However, if either parent or carer starts earning over £60,000, they have to start paying the high-income child benefit charge.
This means you have to pay back 1% of your child benefit for every £200 of income earned over the £60,000 threshold.
Once begin earning more than this a year you have to repay the full amount of child benefit received.
If you earn over this amount you can choose to opt out of receiving child benefit via www.access.service.gov.uk/login/signin/creds.
It comes as the threshold was recently increased from £50,000 to £60,000.
This means parents who are earning less money each year can now claim the benefit and choose to opt back in to to receive it.
HMRC issued the update on X, and said: “Opted out of Child Benefit payments and earn under £80k? You may be missing out on support.
“The amount you or your partner can earn before you start paying the High Income Child Benefit charge is now £60k. Opt back in online or in the HMRC app.”
Those who chose to opt out of the benefit can now reclaim.
You can do this by visiting the HMRC website or downloading the app.
You can also contact the Child Benefit Office by phone or post to restart your Child Benefit payments.
After the Child Benefit Office gets your request, it can take up to 28 days before you get your first payment.
The office will write to tell you how much money you’ll get from backdated payments if you qualify for any.
What is child benefit?
You get child benefit if you’re responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training.
The payment is used to help parents cover the costs of childcare.
Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes are made weekly.
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
NICs count towards your State Pension so claiming the benefit can be useful if you are missing any.
The reason NICs are so important is because you need 35 NIC years to receive a full new State Pension.
You are considered a parent, or responsible for a child if you live with them and are paying at least the same amount as the Child Benefit rates to look after them – for example for food, clothes or pocket money.
It’s important to note that eligibility changes if a child goes into hospital or care and if your child starts to live with someone else.
If you’re not sure about your eligibility, you can contact the child benefit office.
You must contact the Child Benefit Office if you think you are paid too much or too little.
What help is available for parents?
CHILDCARE can be a costly business. Here is how you can get help.
30 hours free childcare – Parents of three and four-year-olds can apply for 30 hours free childcare a week.To qualify you must usually work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. Tax credits – For children under 20, some families can get help with childcare costs. Childcare vouchers – If your employer offers childcare vouchers you can get up to £55 a week in tax and national insurance savings.You pay for your childcare before your tax contributions are taken out.This scheme is open to new joiners until October 4, 2018, when it is planned that tax-free childcare will replace the vouchers. Tax-free childcare – Available to working families and the self-employed, for every £8 you put in the government will add an extra £2. Read More Details
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