HMRC urges parents to act ahead of Christmas over payment worth £1,331 a year

HM Revenue and Customs (HMRC) has encouraged new parents to apply for Child Benefit, highlighting the possibility of receiving their first payment before Christmas. The tax authority announced that over one million families have utilized HMRC's online service or app to claim Child Benefit since its launch earlier this year.

In an appeal to new parents, HMRC noted that a successful claim could result in the first payment being processed within three working days.

Child Benefit is disbursed at £25.60 per week for an eldest or only child, and £16.95 weekly for any additional children, potentially adding up to £1,331 annually for the first child and £881 annually for subsequent children. Parents can register for Child Benefit 48 hours following a child's birth and may continue to claim until a child reaches 16 or even up to 20 years old if they remain in full-time education.

This also applies to adoptive parents or those with sole responsibility for a child. Claims for Child Benefit can be backdated by as much as 12 weeks, offering the opportunity for a substantial lump sum just in time for the festive period. Payments are then made every four weeks, reports the Mirror.

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

To kick off the process, parents are required to set up an online account for HMRC services and to make their claim, families will need: Since the launch of its online services, HMRC reports that 87% of new claims each month are made via the app or online. The HMRC app also enables claimants to monitor payments and update necessary details such as address or bank information.

However, it's crucial to note before claiming that if either parent earns between £60,000 and £80,000 individually, 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 provides an estimate of the Child Benefit they will receive, and what the potential tax charge may be.

Those who need to pay the charge must do so through self-assessment. If families claimed Child Benefit prior to April 6, 2024, and the higher earner had an individual income exceeding £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 registration was October 5, 2024.

If you missed this, you could face a penalty. You will then need to settle what you owe by January 31, 2025.