HMRC Encourages 2,000 Parents to Claim Their Free £1,331 Today
Around 2,000 babies are born on 26th September each year, making it the most common birth date in the UK. In light of this, HM Revenue and Customs (HMRC) is urging parents to make sure they claim their entitlement to Child Benefit. Claiming online enables families to potentially receive their first payment within just a week of their baby’s birth. Child Benefit provides up to £1,331 annually for the first child and £881 for each subsequent child. Claims can be easily made using the free and secure HMRC app or online, 48 hours after the baby’s birth registration. Payments are typically processed within three days, allowing parents to potentially receive their first payment within a week. Claims can also be backdated for up to three months.
Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasised the importance of claiming Child Benefit, especially for parents of babies born on the popular 26th September. Lloyd highlighted that the online claiming process has been streamlined for quick and efficient payments, with first payments possible within three days. HMRC has also released a YouTube video explaining the claiming process for new parents, providing a step-by-step guide. To make a claim, families will need necessary documents including the child’s birth or adoption certificate, bank details, National Insurance number for both parents, and original identification documents for children born outside the UK.
It’s noted that the benefit amount may be reduced for households where one individual earns between £60,000 and £80,000, subject to the High Income Child Benefit Charge. Families falling under this category can use the online Child Benefit tax calculator to estimate their potential benefit and associated charges. Families previously opting out of payments due to the High Income Child Benefit Charge when the threshold was £50,000 can restart their payments by using the online form available on GOV.UK. By claiming Child Benefit, individuals also accrue National Insurance (NI) credits crucial for State Pension eligibility, with a minimum of 10 years of NI credits required.
Even households subject to the High Income Child Benefit Charge can receive NI credits by claiming Child Benefit, even if they choose not to receive payments. This proactive step can contribute to their NI credit accumulation, beneficial for individuals without paid employment or NI credits through their employers. Claiming Child Benefit not only provides financial support but also safeguards individuals’ future State Pension entitlement by accruing necessary NI credits.
As HMRC continues to emphasise the importance of claiming Child Benefit promptly, parents are encouraged to take advantage of this benefit to secure their children’s future financial well-being. By claiming now, families can ensure they receive the support they are entitled to, benefiting both their immediate financial situation and long-term retirement planning.