Martin Lewis’ MSE issues warning to parents at risk of having benefits removed

MARTIN Lewis’ MoneySavingExpert has issued an urgent warning to thousands of parents who risk having their benefits stopped unless they act soon.

The consumer website explained in its latest newsletter that those applying for child benefit have a key deadline coming up this month.

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Child benefit is paid to anyone responsible for raising a child under the age of 16 or under the age of 20 who is in full-time education.

It’s worth £25.60 per week for your first child and then £16.95 per week thereafter, so it’s worth claiming if you don’t already.

However, if your child has turned 16 but is continuing their approved studies, such as A-Levels or NVQs, they will need to reapply for child benefit or it will be stopped.

HMRC should send you a letter when your child turns 16 asking if they are still in full-time education and giving details of how to reapply.

You can also reapply online via the HMRC website.

But the deadline to do so if your child has already turned 16 is August 31.

The Ministry of Economy and Finance (MSE) has stated: “Has your child turned 16 and is studying or training full-time? Act NOW to avoid losing your child benefit.

“To continue receiving your payments, please contact HM Revenue & Customs before 31 August.”

WHAT IS CHILD BENEFIT, WHO IS ELIGIBLE AND HOW TO APPLY?

Child benefit is paid to parents of children under the age of 16 or under the age of 20 who are still in ‘approved’ education or training.

It is paid at two weekly rates: £25.60 for the eldest or only child and £16.95 for any additional children.

Payments are usually made every four weeks, on Mondays or Tuesdays, but sometimes also weekly.

If you claim child benefit for a child under 12, you will also receive National Insurance (NI) credits.

NICs count towards your State Pension, so they can be useful if you are short of one, as 35 years of NICs gives you a new full State Pension.

You are considered a parent or guardian of a child if you live with the child and pay at least the same amount as the child benefit to care for the child (for example, food, clothing or pocket money).

It is important to note that eligibility changes if a child enters a hospital or care facility and if your child begins living with someone else.

If you are unsure of your eligibility, you can contact the child benefits office.

Since 2013, if you or your partner, if you have one, earn more than a certain amount, you must start paying a portion of the child benefit.

Exceed a second threshold and you’ll have to pay it back in full.

This is done through what is known as the High Income Child Benefit Charge (HICBC).

The threshold at which repayments must begin is now £60,000, having been raised from £50,000.

The rate at which you must repay the full allowance is £80,000, which was recently increased from £60,000.

Either way, it’s your decision to pay the fee, and if you don’t, you could be hit with a very expensive bill.

You can apply for child benefit 48 hours after registering your child’s birth or once your child moves in with you.

It can be backdated up to three months if you do not claim it immediately.

Only one person can apply for child benefit, so you should think carefully about who might need it most.

For example, if your partner is missing NIC numbers, you should probably claim them so you can top them up.

You can apply for child benefit through the Government website.

OTHER CHANGES IN CIRCUMSTANCES THAT YOU MUST REPORT TO HMRC

It’s not just that your child turns 16 and continues to study full-time that you need to report to HMRC.

You must also inform the government department if you move house or if your immigration status changes.

You must also inform HMRC if one of your parents has died or if your child changes their name or gender.

Any of the following changes in your child’s circumstances must also be reported to HMRC:

• Your child is between 16 and 20 years old and is dropping out of school or training.
• Your child is over 16 years old and starts working more than 24 hours per week.
• Your child gets married or forms a civil union.
• Your child disappears or dies.
• Your child lives away from you for more than eight weeks at a time.
• Your son moves in with his partner permanently.
• Your child leaves the country for more than 12 weeks, unless it is as part of his or her school education or to receive medical treatment.
• His son goes to prison for more than eight weeks

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