Martin Lewis’ MoneySavingExpert issues warning to thousands of parents – act now to stop benefit payments being axed
MARTIN Lewis' MoneySavingExpert has issued an urgent warning to thousands of parents who risk having a benefit stopped unless they act soon.
The consumer website explained in its latest newsletter those claiming child benefit have a key deadline coming up this month.
Child benefit is paid to anyone responsible for bringing up a child under 16, or under 20 and in full-time education.
It is worth £25.60 a week for your first child then £16.95 a week from then on, so is well worth claiming if you don't already.
However, if your child has turned 16 but is carrying on in approved education such as A-Levels or an NVQ, you have to reapply for child benefit or it will stop.
HMRC should send you a letter when your child turns 16 asking if they are still in full-time education with details on how to reapply.
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You can also reapply online via HMRC's website.
But the deadline to do it if your child has already turned 16 is August 31.
MSE said: "Child turned 16 & in full-time education or training? Act NOW to avoid losing child benefit.
"To keep getting your payments, contact HM Revenue & Customs by August 31."
WHAT IS CHILD BENEFIT, WHO IS ELIGIBLE AND HOW TO APPLY?
Child benefit is paid to parents of children aged under 16 or below 20 and still in "approved" education or training.
It is paid at two weekly rates - £25.60 for your eldest or only child and £16.95 for any additional children.
Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes weekly.
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
NICs count towards your state pension so can be useful if you are missing any, with 35 NIC years giving you a full new state pension.
You are considered a parent, or responsible for a child, if you live with them and are paying at least the same amount as the child benefit rates to look after them - for example for food, clothes or pocket money.
It's important to note that eligibility changes if a child goes into hospital or care and if your child starts to live with someone else.
If you're not sure about your eligibility you can contact the child benefit office.
Since 2013, if you, or your partner if you have one, earns over a certain amount, you have to start paying some child benefit back.
Go over a second threshold and you have to pay it back in its entirety.
This is through what's known as the High Income Child Benefit Charge (HICBC).
The threshold through which you have to start paying money back is now £60,000 after it rose from £50,000.
The rate at which you have to pay the entire allowance back is £80,000, which recently increased from £60,000.
It's up to you to pay the charge though, and if you don't you can be stung with a nasty bill.
You can make a claim for child benefit 48 hours after you've registered the birth of your child, or once they move in with you.
It can be backdated by up to three months if you don't claim it straightaway.
Only one person can claim child benefit for a child, so you should think carefully about who might need to the most.
For example, if your partner is missing NICs, they should probably claim so they can top them up.
You can apply for child benefit on the Government's website.
OTHER CHANGES IN CIRCUMSTANCES YOU NEED TO TELL HMRC ABOUT
It's not just your child turning 16 and staying in full-time education that you need to tell HMRC about.
You also have to tell the Government department if you move house or if your immigration status changes.
You also need to tell HMRC if a parent has died, or your child changes their name or gender.
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HMRC must also be told of any of the following changes to your child's circumstances:
- Your child is aged 16 to 20 and leaves education or training.
- Your child is over 16 and starts working more than 24 hours per week.
- Your child gets married or forms a civil partnership.
- Your child goes missing or dies.
- Your child lives away from you for more than eight weeks in a row.
- Your child moves in with their partner on a permanent basis.
- Your child leaves the country for more than 12 weeks, unless it is part of school education or to get medical treatment.
- Your child goes to prison for more than eight weeks
How to claim Child Benefit
Child benefit is worth up to £1,331 a year for your first or only child and up to £881 a year for additional children.
This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every 4 weeks or £16.95 a week for their siblings.
There is no limit on the number of children that can be claimed for.
Applying is straightforward and can be done in minutes at gov.uk 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.
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