Latest news with #ChildBenefit
Wales Online
18 hours ago
- General
- Wales Online
Letters sent out as people could be owed over £7,000 after error
Letters sent out as people could be owed over £7,000 after error HMRC is writing to around 370,000 people to inform them of a mistake that could be affecting their state pension, with thousands of individuals owed a significant sum HMRC has uncovered a historical error that means thousands of women could be due compensation to the tune of £7,859. The error primarily impacted women who gave birth in the 80s and 90s under the Labour Party government's tax department. Consequently, HMRC is now sending letters to these women about their potential entitlement to a significant payout. The mistake relates to Home Responsibilities Protection (HRP), a scheme aimed at reducing the number of years needed on your National Insurance record to qualify for the full state pension. Tax experts suggest that those most affected by this oversight are stay-at-home mothers who claimed Child Benefit between 1978 and 2000. For money-saving tips, sign up to our Money newsletter here . During this time, if you were at home raising children or caring for someone and receiving either Child Benefit or Income Support, you were eligible for HRP. However, the system was altered in 2010 when HRP was replaced with National Insurance credits. Unfortunately, for thousands of people, their HRP entitlement wasn't correctly recorded or transferred to their National Insurance record. This lapse by HMRC, which has now been recognised and is being rectified, means some individuals have gaps in their records, according to Birmingham Live. What's more worrying is that as a result, they may be receiving less state pension than they're entitled to, or will be in the future. The tax department has initiated the process of sending letters to roughly 370,000 individuals. They've pinpointed just over 5,300 instances of underpayment from January to September 2024, amounting to a total debt of around £42 million. On average, each person is due approximately £7,859. It's projected that about 43,000 of the affected individuals have unfortunately passed away, however, their families are still eligible to claim the owed sum. HMRC is prioritising those who have reached pensionable age and reaching out to them first. Article continues below To qualify, you must have been receiving child benefit in your own name (not a spouse or partner), your child was under 16 for the entire financial year in question, and you were not contributing to the married woman's 'reduced stamp'. Get daily breaking news updates on your phone by joining our WhatsApp community here .
Scottish Sun
a day ago
- Business
- Scottish Sun
Full list of benefits not affected by two-child rule – as government mulls axing cap
PARENTS may still be eligible to claim thousands of pounds in support despite the two-child benefit cap, as pressure mounts on ministers to abolish the policy. Here is everything you need to know. Advertisement 1 Pressure is growing on the government over the two-child benefit cap Credit: Getty WHAT IS THE TWO CHILD CAP? The rule, which limits child-related payments in Universal Credit and to just two children per household, doesn't apply to all benefits. It means families with three or more kids may still be missing out on cash they're eligible for. Prime Minister Sir Keir Starmer yesterday refused to rule out scrapping the rule, which currently limits benefit payments to two children per household for Universal Credit and tax credits. It means that families can miss out on up to £3,455 a year for a third or later child born after April 2017. Advertisement The policy, introduced in a bid to keep welfare spending in check, has faced criticism from some MPs and campaigners. But scrapping the cap could cost the Treasury around £3billion annually, and would likely require new tax rises or spending cuts elsewhere to fund. Visiting a factory in Warrington, the PM said he was 'determined to drive down child poverty' but stopped short of making a firm commitment. Asked repeatedly whether the rule would go, Sir Keir said ministers were "looking at all options". Advertisement While the cap still applies to some benefits, others remain unaffected – and families may still be eligible for support depending on their circumstances. Here's the full breakdown. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence CHILD BENEFIT This universal benefit is paid for every child, regardless of how many you have. £25.60 a week for the first child £16.95 a week for each additional child If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits. Advertisement Child Benefit also comes with National Insurance credits, which count towards your State Pension. Note: If you or your partner earn over £60,000, you may be liable for the High Income Child Benefit Charge, which can reduce or eliminate the payment. How do I claim child benefits? APPLYING is straightforward and can be done in minutes at or through the HMRC app. Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days. You can also backdate claims for up to three months. Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working. National Insurance credits build up your entitlement to the state pension. DISABILITY LIVING ALLOWANCE (DLA) DLA is available for children under 16 who have disabilities and require extra care or mobility support. It's not affected by the two-child cap, and is worth £28.70 to £184.30 a week, depending on the level of need. Advertisement Once a child turns 16, they must apply for Personal Independence Payment (PIP) instead. PERSONAL INDEPENDENCE PAYMENT (PIP) PIP is for people aged 16 to 64 with a long-term health condition or disability. It is not subject to the cap, and multiple eligible individuals can claim within the same household. The benefit is worth up to £184.30 a week for those entitled to both the daily living and mobility components. Advertisement GUARDIAN'S ALLOWANCE This benefit is for individuals raising a child whose parents have died. Paid at £21.75 a week per child Paid in addition to Child Benefit Unaffected by the two-child limit You must be claiming Child Benefit and meet the qualifying criteria around guardianship. ADOPTION ALLOWANCE Paid by local authorities, this benefit supports adoptive families who may face extra costs related to a child's care needs. There's no cap on how many adopted children can qualify, and payments vary depending on your financial circumstances and the child's needs. Advertisement LOCAL WELFARE SCHEMES These include support such as: Discretionary Housing Payments The Household Support Fund Free school meals These schemes are not restricted by the two-child cap, but eligibility and availability vary by council. UNIVERSAL CREDIT EXEMPTIONS While the child element of UC is capped, exceptions do exist, including: You have adopted them or other children in your household You receive guardian's allowance for them or other children in your household They are the second (or more) child born in a multiple-birth They or other children in your household are the offspring of one of your children who is under 16 years old They or other children in your household are not your child or stepchild, and you look after them under a court order They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care) They were conceived as a result of rape, and you do not live with the perpetrator As the government continues to review the policy, no final decision has been made — but for now, these benefits remain available outside the cap. Advertisement To check if you're eligible, visit or speak to an independent benefits advisor. Who's exempt from the two-child benefit cap? The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if: They were born before April 6, 2017 They are disabled (disabled child element only) You qualify for an exception in child tax credit or special circumstances apply in Universal Credit You qualify for an exception or special circumstances for each third (or subsequent) child if: You have adopted them or other children in your household You receive guardian's allowance for them or other children in your household They are the second (or more) child born in a multiple-birth They or other children in your household are the offspring of one of your children who is under 16 years old They or other children in your household are not your child or stepchild, and you look after them under a court order They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care) They were conceived as a result of rape, and you do not live with the perpetrator Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
The Irish Sun
2 days ago
- Business
- The Irish Sun
Major 72-hour ‘not available' social welfare warning for thousands of Irish TOMORROW amid service maintenance
A MAJOR warning has been issued to social welfare recipients as a key online service is set to be unavailable for 72 hours. The Work will be carried out over the June Bank Holiday weekend, meaning the And it will remain unavailable until 8am on Tuesday June 3. In an alert displayed on the website said: "Please note: Update to maintenance window. "Due to essential maintenance, MyWelfare will be offline over the June bank holiday weekend, from 08:00 Saturday 31st May to 08:00 Tuesday 3rd June. READ MORE IN MONEY "We apologise for any inconvenience this may cause." This will mean thousands of people across the country will not be able to access their MyWelfare accounts until well in to next week. The MyWelfare website gives users access to a range of services such as applying for the Jobseeker's Benefit, Child Benefit and Maternity payments. Here you can also access the pathways to work section, apply or manage disability payments, carer payments and pensions. MOST READ ON THE IRISH SUN With the website down you will also be unable to access civil registration services or make appeals or view claims. New online application system opens for €360 or €180 Domiciliary Care Allowance applications During this window some people will also be unable to access their MyGovID. However, not all users will be impacted. Welfare bosses explained: "You will also be unable to verify your basic MyGovID account during this timeframe. "If your account is already verified, you will still be able to access it. "Should the maintenance be completed ahead of schedule, these systems may become available before 8am on Tuesday, 3 June 2025." They added: "We would like to apologise for any inconvenience caused." PAYMENT CHANGES THIS WEEK There will also be The bank holiday Monday falls on June 2 and people will see a change to their Due to the bank holiday, This means that anyone who was expecting to be paid on Monday will most likely be paid early. It's expected that people will see the payment in their account on Friday May 30. The payment schedule will then go back to normal on Tuesday June 3. At this stage the website should also have returned to normal. 1 Key groups will be impacted Credit: Getty Images
Sunday World
2 days ago
- Business
- Sunday World
Parents to get early Child Benefit payment due to June Bank Holiday
With banks and post offices shut on June 2, this will affect anyone who is due to be paid that day, as well as anyone due to receive Child Benefit on Tuesday, June 3. Parents are in for an early payment of their Child Benefit payment this month due to the June Bank Holiday. With banks and post offices shut on June 2, this will affect anyone who is due to be paid that day, as well as anyone due to receive Child Benefit on Tuesday, June 3. It is expected then, that because of changes to the schedule over the bank holiday, anyone in receipt of Child Benefit will most likely be paid tomorrow, Friday, May 30 or Saturday, May 31. Stock image News in 90 Seconds - May 29th This will mean that no one who is entitled to the benefit receives a late payment as a result of the banks being closed. This is likely to apply to the brand-new Baby Grant announced in Budget 2025 and rolled out earlier this year. The grant is paid on the same day as Child Benefit, which is the first Tuesday of each month, in this case, the third. The Child Benefit payment due on August 5 may also be paid early due to the August Bank Holiday on the 4. Meanwhile, parents are urged to ensure they do not have their Child Benefit payment suspended. The €140 a month payment could be at risk if a review form that is s sent out periodically to claimants is not filled in and returned. The Child Benefit review form is a form sent by the Department of Social Protection to ensure recipients are still eligible for the payment. To avoid suspension of the Child Benefit payment, the form, which can be form CB2 for children aged 16 or 17, must be returned within 28 days of being received The form is also used to gather information about a child's school or creche attendance. They also need to verify that both they and the child they're claiming for live in the State. Also, any changes that might affect their Child Benefit claim must be reported. It also requires applicants to state that all the information they've given is true and complete, cautioning that giving false or misleading information, or not revealing important details, could lead to having to pay back the money or facing legal action. If they don't fill in the form and return it within 28 days, their Child Benefit payment will be suspended and claimants will have to take further action to reinstate it.
Daily Mirror
2 days ago
- Business
- Daily Mirror
HMRC confirms major tax change that affects thousands of people
It comes after the Bank of England dropped its base interest rate to 4.25% earlier this month HMRC has cut the late payment interest rate from 8.5% to 8.25% from this week. It comes after the Bank of England dropped its base interest rate to 4.25% earlier this month. It means if you've missed a payment on your tax bill, you'll now be charged slightly less in interest. HMRC said: 'The late payment interest rate encourages prompt payment. It ensures fairness for those who pay their tax on time.' This could affect you if you have yet to file or settle your latest self-assessment tax bill. An estimated 1.1m self-assessment taxpayers missed the recent January 31 tax deadline. Meanwhile, the repayment interest – which is paid to you when HMRC owes you money, for example, if you overpaid tax – is also being reduced to 3.25%. You may need to submit a self-assessment if you're self-employed, if you earned extra income outside of your main employment, if you earn income from renting out a property, or if you're a high earner and you claim Child Benefit. If you missed the January 31 deadline to file your tax return, you would have been slapped with a £100 fine. This increases to fines of £10 a day, up to a maximum of £900. If you still haven't filed after three months - then after six months, you're charged 5% of tax owed or £300, whichever is greater. This is then repeated again after 12 months. You must also pay any tax due or you'll be charged interest on late payments. After 30 days you'll then also be fined an extra 5% of the unpaid tax, with this being repeated at six months and 12 months. If you're struggling to pay your tax bill and you owe less than £30,000, you may be able to set up a payment plan with HMRC, known as Time to Pay. Do I need to fill in a self-assessment tax return? MoneyHelper has explained that you may need to fill in a self-assessment if one of the following applies to you: Your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on) Your income from renting out property was more than £2,500 (you'll need to contact HMRC if it was between £1,000 and £2,500) You earned more than £2,500 in untaxed income, for example from tips or commission Your income from savings or investments was £10,000 or more before tax You need to pay Capital Gains Tax on profits from selling things like shares or a second home You're a director of a company (unless it was a non-profit organisation, such as a charity) You, or your partner's, income was over £60,000 and you're claiming Child Benefit You have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK Your total taxable income was over £150,000 You're a trustee of a trust or registered pension scheme Your State Pension was your only source of income and was more than your personal allowance You received a P800 from HMRC saying you didn't pay enough tax last year
