HMRC alert as thousands of people missing out on free cash

HM Revenue and Customs (HMRC) is urging individuals who earn under £80,000 annually to see if they're eligible for extra cash payments. HMRC has made it known that some people might be overlooking Child Benefit that they are entitled to.

An alert from HMRC on X, formerly Twitter, reads: "If you earn under 80k and haven't claimed Child Benefit yet, it could be financially worth your while. You or your partner can now earn up to £60k before you start paying the High Income Child Benefit Charge."

Parents and guardians are encouraged to apply online or through the HMRC app for Child Benefit, financial support aimed at helping with the cost of raising children.

Administered by HMRC, this benefit grants a specific amount per child below the age of 16, or under 20 if they are still in full-time education or recognised training, while simultaneously helping parents amass National Insurance credits that contribute towards the State Pension. The current rate for Child Benefit stands at £26.05 weekly for the initial child, summing up to an annual total of £1,354.60.

An additional £17.25 per week is awarded for each subsequent child, meaning an extra £2,251.60 a year for two children, or £3,148.60 for three kids. As per the High Income Child Benefit Charge, the amount given starts to reduce when one parent earns £60,000 and stop altogether once earnings hit £80,000.

If you or your partner earn £60,000 or less annually, you're eligible to claim the full Child Benefit amount if the child resides with you, or if you contribute an equivalent weekly sum towards their upkeep. Only one parent or carer can make a claim per child.

You're able to claim Child Benefit 48 hours after registering your child's birth, or once a child begins living with you, and it can be backdated for up to three months. You can apply online, by post, or by phone, and you'll need the child's birth or adoption certificate and your bank details for payments.

You'll also need to provide your National Insurance (NI) number, and your partner's NI number if you have one. The Child Benefit threshold is based on how much one parent earns, not the household collectively.

It is estimated that around 200,000 people in the UK are currently missing out on Child Benefit.