HMRC has encouraged families to do a quick check to see if they could increase their income by £110 a month starting from tomorrow (September 26). The tax body is encouraging those eligible for Child Benefit to get in their application, with payments on offer of £25.60 for an only or eldest child and £16.95 each for any other additional children.
This means that even if you have just the one child, claiming the support would enhance your income by £1331.20 annually, nearly £110.95 a month. HMRC has launched the appeal now as September 26 is traditionally the busiest day of the year for births, with almost 2,000 babies born on this day.
Myrtle Lloyd, Director General for Customer Services at HMRC, stated: “With more babies set to be born on 26 September than any other day, we hope that parents of these newborns take full advantage of their Child Benefit entitlement. We’ve made it simpler than ever to claim online and receive a first payment within as little as three days so download the app today or search on GOV.UK.”
Claims can be submitted using the HMRC app or via the Government website, as soon as 48 hours after the baby’s birth has been registered. Payments typically arrive within three days of the application being submitted, so new parents could receive their first amount within a week. Child Benefit claims can also be backdated by up to three months.
When filing your claim, you will need to provide these details:
- Child’s birth or adoption certificate
- Bank details
- National Insurance number for yourself and your partner, if you have one
- Child’s original birth or adoption certificate and passport or travel document, for children born outside the UK.
A crucial rule to remember regarding the amount of Child Benefit you receive is that part of your claim has to be repaid if one person’s income in a claimant household exceeds £60,000.
The sum you repay, via the High Income Child Benefit Charge, gradually rises as your income surpasses the threshold, and the full amount must be repaid once your income hits £80,000.
You can determine your entitlement using the Child Benefit tax calculator tool on the Government website. A significant advantage of receiving the benefit is that you accrue National Insurance (NI) credits, which contribute towards your state pension.
To receive the full new state pension, currently £221.20 a week, you typically need 35 years of NI contributions, and 10 years of contributions to qualify for any state pension.