Warning to 'take action' when HMRC letter arrives or 'payments will stop'

A tax expert has issued a warning to parents, telling them they need to take action when an HMRC letter arrives soon - or potentially miss out on as much as £1,300. Andy Wood from Crypto Tax Degens has urged Brits to do a simple online check - with millions at risk.

He said: "Parents will soon receive a letter from HMRC, asking them to confirm whether their child remains enrolled in full-time education or training. Remaining eligible for child benefits depends on whether you have a child under 16 (or 20 if the child is in education or training). Child benefit payments amount to a substantial sum, with the potential to reach up to £1,331 annually for the initial child and up to £881 yearly for each additional child."

The letter is due to be sent to all parents between May 24 and July 17 and will contain a QR code guiding recipients to the gov.uk website. Once there, parents can renew their child benefit claim online.

Andy added: “Gov.uk have warned parents have until August 31 to take action or their payments will automatically stop. Although child benefit payments are available to all individuals with children, those with higher incomes are liable to pay the High Income Child Benefit Charge.

“The gov.uk website clarifies that individuals may be required to pay the High Income Child Benefit Charge if their or their partner’s ‘adjusted net income’ exceeds £60,000 annually. If you or your partner's income surpasses £80,000, you will be charged an amount equivalent to the total benefit you would receive through claiming it.”