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Chronicle Live

National

Catherine Furze

Warning to parents as their child benefit could stop within weeks

HMRC National Insurance UK (Organization)

Thousands of parents have been warned to look out for a letter from HMRC or risk getting their Child Benefit stopped this summer.

Child Benefit automatically ends on August 31 on or after your child's 16th birthday, but you can continue getting the cash if you tell the Child Benefit Office that your child is remaining in education or training.

However, this is not automatic and parents have to either let HMRC know online or return the form that comes with the letter for payments to continue. Households are usually sent a letter in their child's last year at school asking you to confirm their plans and to be eligible to receive Child Benefit beyond 16, your child need to stay on in 'full-time non advanced education or approved training, such as:

A levels or similar, for example Pre-U, International Baccalaureate
T levels
NVQs and other vocational qualifications up to level 3
Home education - if it started before your child turned 16 or after 16 if they have special needs
Traineeships

Education must be full-time, which means more than an average of 12 hours a week of supervised study or course-related work experience.

Some families can also apply for a Child Benefit extension when their children's education or training comes to an end. You could get Child Benefit for 20 weeks if your child leaves approved education or training and either registers with their local careers service Connexions or signs up to join the armed forces. To apply for the extension, go to Gov.UK or by call HMRC on 0300 200 3100.

If your child is aged 16-20 and is due to end education or training soon, their payments could stop at three other key dates. These could have been at the end of February, today (May 31) or November 30 as well as August 31.

Most parents can claim the benefit, which can top-up their incomes by £24 a week for the eldest child or only child and £15.90 a week for subsequent children. You will normally qualify for child benefit if you live in the UK and you're responsible for a child under 16 or child under 20 if they stay in approved education or training.

Parents who earn more than £50,000 can still claim Child Benefit, but the High Income Child Benefit Charge kicks in, meaning you'll start to be taxed on the money you claim. The High Income Child Benefit Charge ( HICBC ) was introduced in January 2013, it is a tax charge that applies to anyone with an income over £50,000 who gets Child Benefit, or whose partner gets it.

From your self-assessment tax return, HMRC calculates how much you owe them in over-payments which must either be paid in full or negotiated to be paid in instalments. But once you start earning £60,000 of more, you'll lose all of your benefit through tax, however, it could still be a good idea to apply for it, as it ensures you will keep your National Insurance credits to protect your entitlement to State Pension and means your child will automatically be issued with a National Insurance number before their 16th birthday. It also means you will be eligible for other benefits, such as Guardian’s Allowance.

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When two or more people share caring responsibilities for a child, Child Benefit can only be claimed by one person. To be considered responsible for a child, you will live with them or pay at least the same amount as child benefit rates to look after them - for example, for food, clothes or pocket money.

Foster parents can also claim Child Benefit as long as the local council is not paying anything towards their accommodation or maintenance. Legal guardians or parents who are adopting a child can also apply for the support as soon as the child comes to live with them.

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