logo
HMRC issues urgent letters to 1.5million parents to avoid having £1,354 payment stopped ahead of new school year

HMRC issues urgent letters to 1.5million parents to avoid having £1,354 payment stopped ahead of new school year

Scottish Sun2 days ago

Read below to see the exact date you need to take action by
TO YOUR BENEFIT HMRC issues urgent letters to 1.5million parents to avoid having £1,354 payment stopped ahead of new school year
HMRC will issue urgent letters to 1.5 million parents to avoid having a £1,354 payment stopped ahead of the new school year.
Parents of children aged 16 to 19 years old should expect a reminder from the taxman to extend their Child Benefit claim.
1
Parents should expect a letter from the taxman to remind them to extend their child benefit claim
Credit: Alamy
Child benefit is worth up to £1,354 a year for the first or only child, and up to £897 per a year for each additional child.
However, payments automatically stop on August 31 or after the child has turned 16 unless parents renew their claim when their child is continuing in education.
The parents of children who are furthering their education have until this date to tell HMRC or their payments will cease.
Parents can continue to receive the cash boost up until their child is 19, and enrolled in an apprenticeship program or the following education schemes:
A levels or similar, for example International Baccalaureate
T levels
Scottish Highers
NVQs and most vocational qualifications up to level 3
home education - if it started either before your child turned 16 or after 16 if they have a statement of special educational needs
study programmes in England
a pre-apprenticeship
Your child must be accepted onto the course before they turn 19.
The payment works out at £26.05 per week for one child and £17.25 per week for each additional child, so it is important to respond to the HMRC if you want to receive the benefit in September.
HMRC will be delivering letters up until July, so don't worry if you have not received yours yet.
The letters will include a QR code which, when scanned, directs them straight to GOV.UK so parents can update online.
Parents can also extend their child benefit claim via GOV.UK or the HMRC app.
What Does My Tax Code Mean? A Simple Guide to Your HMRC Letter
However, it is important to remember to do this before August 31 or you could risk losing out.
Myrtle Lloyd, HMRC's Director General for Customer Services, said the benefit is an "important boost" to families.
She said: "As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to GOV.UK or the HMRC app to confirm today."
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.
It is paid at two weekly rates - £26.05 per week for your eldest or only child and £17.25 for any additional children.
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.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

£69m unclaimed Child Trust Funds in Wales, charity says
£69m unclaimed Child Trust Funds in Wales, charity says

South Wales Argus

time2 hours ago

  • South Wales Argus

£69m unclaimed Child Trust Funds in Wales, charity says

In Wales alone, £69 million remains untouched in HMRC-allocated Child Trust Funds (CTFs), according to The Share Foundation. Nearly half of these accounts (46.1 per cent) belong to young people from low-income backgrounds. The Share Foundation is calling for automatic payments of these funds to eligible account holders once they turn 21. Gavin Oldham, chairman of trustees at The Share Foundation, said: "Child poverty is becoming one of the big issues of our time. "We need to break the cycle of deprivation which is why, over the past 12 years, we have been committed to establishing starter capital accounts for young people in care and helping young people from low-income backgrounds access Child Trust Funds they never even knew existed. "These initiatives are delivering positive outcomes exactly when families need them most." The charity has already helped more than 85,000 young people access at least £165 million in matured CTFs.

HMRC bills workers for tax it abolished last year
HMRC bills workers for tax it abolished last year

Telegraph

time12 hours ago

  • Telegraph

HMRC bills workers for tax it abolished last year

HM Revenue & Customs (HMRC) has accidentally billed workers for a tax that was abolished last year. Class 2 National Insurance (NI) contributions were effectively scrapped for self-employed people in April 2024. However, workers have reported that HMRC is still adding the levy of £179.40 to their tax bill despite now being exempt. Some have been told to pay twice this amount – £358.80. Experts said it was 'ridiculous' that HMRC was getting self-employed NI calculations wrong when it was quick to fine workers for errors navigating the 'complex' tax system. A source close to the error reports told The Telegraph there were indications the problem was 'very widespread' and that the number of people affected could be in the tens of thousands. HMRC said it was 'working urgently' to resolve the issue. The reason for the error is unknown, but the problem is understood to have arisen as a result of the changes announced in the autumn 2023 Budget that came into effect for the 2024-25 tax year. The rule change means self-employed workers now receive a credit for Class 2 NI, which boosts entitlement to 'contributory' benefits such as the state pension, as long as their profits are above £6,725. As a result, they do not need to pay Class 2 NI, but can still use the credit to improve their entitlements. Anyone with profits below £6,725 can opt to pay the tax voluntarily at a rate of £3.45 per week, adding up to £179.40 a year. The Association of Taxation Technicians (ATT), a professional body for the tax compliance industry, said its members had reported receiving one of three letters containing errors from HMRC. The first said the Class 2 NI tax sum had been 'amended' to zero, which made the letter unnecessary. The second wrongly demanded £179.40 in tax, while the third demanded twice this amount. Michelle Denny-West, a tax partner with accountancy firm Moore Kingston Smith, said: 'The National Insurance Contribution (NIC) system for self-employed individuals has always been confusing, but the fact that HMRC cannot get this right is ridiculous. 'It's frustrating that taxpayers are expected to navigate such a complex tax system and can be charged penalties and interest for mistakes – yet they are now also expected to correct HMRC's mistakes. 'The risk here is that some individuals will unwittingly pay the additional NICs without realising it's a bill they should not be paying.' Helen Thornley, of the ATT, said: 'Our members have reported a number of problems with national insurance calculations for 2024-25. Most self-employed individuals are not required to pay Class 2 contributions following changes announced at last year's Budget. 'However, many have received letters from HMRC which have added charges of almost £180 in Class 2, and in some instances double that amount. 'We have reported all examples to HMRC, who have assured us that this is being investigated 'as a matter of urgency'. 'However, it is still not clear what the reason behind the issue is. In the meantime, anyone affected should contact HMRC to ask for a resolution.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store