HMRC tells parents they can get £1,331 cash boost by Christmas

Families across the UK are being encouraged to secure a significant £1,331 cash boost. HM Revenue and Customs has highlighted that new parents who utilise its online or app services to claim Child Benefit could see their initial payment processed in time for a jolly festivity for their newborn's inaugural Christmas.

The tax authority has shared that since launching its digital service, over one million parents have made their claims using these online tools, with a whopping 87 per cent of all new Child Benefit applications now submitted through the internet.

Myrtle Lloyd, HMRC's Director General for Customer Services, remarked: "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."

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She also pointed out that claims can be retroactively applied for up to three months and that payments commonly occur every four weeks.

Currently, families receive £25.60 weekly for the eldest or only child and £16.95 for subsequent children, totalling £1,331 and £881 annually. After registering a birth, claims can be made online within just 48 hours, with the first deposit typically arriving in less than a week.

Come April 2025, these amounts will experience a 1.7 per cent uplift due to an increase tied to inflation, adjusting them to £26.05 and £17.25 each week, respectively.

To kick off, parents are required to set up an online account for HMRC services. They'll need the child's birth or adoption certificate, bank details, their own and their partner's National Insurance number, and the child's passport or travel document if they were born outside the UK.

If either parent earns between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. An online Child Benefit tax calculator can provide an estimate of the benefit they'll receive and what the charge might be.

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. In this case, registration for Self Assessment is necessary.

HMRC states that those who were subject to the high-income charge when the threshold was £50,000 and opted out of receiving any payments rather than repaying it via the tax system can restart their Child Benefit payments online or through the app. Child Benefit claimants receive National Insurance credits that count towards their eligibility for the State Pension.

According to HMRC, this can assist individuals who are not in paid employment and do not receive NI credits through their employer or other routes such as Universal Credit.

A person residing in a household affected by the High Income Child Benefit Charge will still be eligible for NI credits if they claim Child Benefit but choose not to receive payments. Claiming Child Benefit also ensures that the child automatically receives a National Insurance number when they turn 16.