Parents with children born in 2013 are being urged to claim child benefit before the looming deadline, as failing to do so could result in lost payments and missed National Insurance credits. The government has changed the system to mean-test benefits, affecting households where someone earns over £50,000.
From 7 January 2013, families with a member earning more than £50,000 will see reduced payments, while those earning over £60,000 will lose entitlement entirely. To avoid overpayments, recipients must opt out by midnight on 6 January via the HMRC website or phone line.
Affected individuals must file a self-assessment tax return by 31 January 2014 for payments received between 7 January and 5 April 2013. The tax charge is set at 1% of child benefit for each £100 earned above £50,000, up to a full clawback at £60,000.
HMRC estimates 1.1 million families will be impacted, with 70% losing all benefit. The average loss is around £1,300 per year. Current rates are £20.30 weekly for the first child and £13.40 for subsequent children, paid every four weeks.
Opting out still preserves National Insurance credits for state pension eligibility. Parents who do not claim now but have children later can protect their pension by applying and opting out of payments. The deadline applies to those with income over £60,000 or partners earning that amount.
