HMRC urges new parents to act now to get £1,331 before Christmas

HMRC has issued an urgent call to new parents, encouraging them to claim Child Benefit, highlighting the prospect of receiving their first payment by Christmas if they act promptly. The tax authority disclosed that over a million families have already made successful claims through HMRC's digital service or app since its launch earlier in the year.

HMRC is pushing for new claims, assuring successful applicants that their first payment could be received within three business days.

Child Benefit is doled out at two rates: £25.60 for the eldest or only child and £16.95 per additional offspring, amounting to a yearly sum of up to £1,331 for the first child and £881 for subsequent children. New parents can register for this benefit as soon as 48 hours after childbirth and continue claiming until the child turns 16—or 20 if they remain in full-time education.

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Additionally, individuals who have adopted, or are solely responsible for a child, are also eligible. Claims can be retroactive for up to three months; hence, those who haven't claimed yet might receive a substantial payment just in time for the festive season. The Mirror reports that child Benefit is paid every four weeks following the claim.

Myrtle Lloyd, HMRC's Director General for Customer Services, offered advice to new parents, stating: "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, 87% of new claims each month are made through their app or online, which also allows claimants to track payments and update details as necessary.

However, it's crucial to note that if either parent earns 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 potential benefits and tax charges.

Those liable for the charge must pay through self-assessment. If Child Benefit was claimed before April 6, 2024, and the higher earner had an income over £50,000, they may have to pay the tax charge for 2023 to 2024.

Registration for self-assessment was required by October 5, 2024, with penalties for late registration. Payment is due by January 31, 2025.