HMRC gives advice to parents ahead of Christmas and it could be worth a payment of £1,331 a year

HMRC is calling on new parents to apply for Child Benefit, promising that they could see their initial payment by Christmas if successful. HMRC disclosed that since the launch of its new digital service, more than one million families have already utilised it to claim Child Benefit.

With the potential for a first payment within just three working days, HMRC is encouraging eligible new parents to take action. Child Benefit is disbursed at two different fortnightly rates – £25.60 for an eldest or only child and £16.95 for any subsequent children – amounting to £1,331 annually for a first child and £881 for additional children.

Parents can register for Child Benefit as soon as 48 hours post-birth and claim up until a child's 16th birthday, or their 20th if in full-time education, and this includes those who adopt or have sole responsibility for a child. The claims can be backdated for no more than 12 weeks, allowing parents who have yet to claim an opportunity to receive a significant sum before the festive season arrives.

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Following a claim, payments are made every four weeks. Myrtle Lloyd, HMRC's Director General for Customer Services, encourages: "Having a baby is a busy and expensive time but claiming Child Benefit online or via the app means you'll get cash in your bank account as soon as possible. Claim now and you could get your first payment in time for your baby's first Christmas. Download the HMRC app today."

Parents looking to claim child benefits will need to create an online account for HMRC services. According to HMRC, since the launch of its online services, 87% of new claims each month are made through the app or online, reports the Mirror.

The HMRC app also allows claimants to track payments and update their details if needed. However, it's crucial to note that if either parent has an individual income between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge (HICBC).

For families in this bracket, HMRC's online Child Benefit tax calculator can provide an estimate of how much Child Benefit they will receive, and what the tax charge may be. Those who need to pay the charge must do so through self-assessment.

If families claimed Child Benefit before April 6, 2024, and the higher earner had an individual income of over £50,000, they may have to pay the tax charge for 2023 to 2024. If they need to pay the charge, they will need to register for self-assessment.

However, the deadline for registering was October 5, 2024. If you missed this, you could receive a penalty.

You will then need to pay what you owe by January 31, 2025.