12.8 C
Munich

HMRC Oversight: Families to Receive Child Benefit Refunds

Must read

Hundreds of households may receive compensation from HMRC due to a significant oversight concerning Child Benefit. It is estimated that approximately 500 families were deprived of entitled Child Benefit payments. If you were a parent of a child aged 16 to 19 pursuing education or training outside traditional schooling between April 2014 and August 2025, you might be eligible for a refund. The corrective measures are anticipated to cost £1 million, with potential reimbursements of up to £2,600 per family. HMRC aims to complete all compensations by October 2026.

Recent adjustments to Child Benefit rules will be implemented from September 2025 to rectify the error by eliminating the prerequisite that education outside conventional institutions must have commenced before the individual turned 16.

In light of significant changes by the Department for Work and Pensions, the Mirror has introduced a dedicated Money WhatsApp community to deliver the latest money-saving advice and news directly to your mobile device. To join, simply click the provided link, select ‘Join Chat’, and you will gain access to real-time updates and exclusive content on your phone. Furthermore, community members will receive special deals and promotions from the Mirror and its partners. If you wish to exit the community, you can do so at any time by selecting ‘Exit group’.

“Full time” education can also encompass less than 12 hours per week in cases where health or disability limits study time. An HMRC representative mentioned that out of around seven million families receiving Child Benefit last year, only a small fraction, approximately 500 over a decade, might have missed out on their rightful entitlement. Efforts are being made to inform and assist these families in claiming what is owed.

Child Benefit amounts to £26.05 weekly for the first child and £17.25 for each subsequent child. Eligibility for Child Benefit extends to individuals responsible for children under 16 or those under 20 engaged in approved education or training. Notifying HMRC and updating your benefit claim is necessary if your child continues education or training post-16, as Child Benefit automatically ceases upon their 16th birthday. Informing HMRC is also mandatory if your child discontinues their approved education or training prematurely.

Child Benefit, claimed by over seven million families, is disbursed every four weeks by HMRC. To qualify, the child typically resides with the claimant or the claimant contributes an amount equal to or exceeding the Child Benefit toward the child’s care. High-income earners may be required to repay a portion of their Child Benefit, with individuals earning above £60,000 reimbursing 1% of Child Benefit for every £200 exceeding the £60,000 threshold.

More articles

Latest article