The UK’s tax authority, HM Revenue & Customs (HMRC), is currently reassessing the suspension of child benefit payments for approximately 23,500 claimants. This action was taken after the agency utilized travel data to assume that these individuals had permanently relocated outside the UK. Typically, child benefit eligibility ceases after eight weeks of residing abroad; however, numerous claimants reported that their payments were halted following brief holiday trips.
The scrutiny of HMRC’s practices gained momentum following inquiries from the Treasury Select Committee, which has prompted a review of the decisions made by the agency. HMRC has acknowledged the possibility of errors and encouraged those who believe their benefits were mistakenly terminated to reach out to them.
This review comes in the wake of a new initiative aimed at curbing child benefit fraud, which the government estimates could yield savings of £350 million over five years. The updated protocol allows HMRC to cross-reference its records with Home Office international travel data, leading to the suspension of payments for many families. However, the agency is now re-evaluating the cases of individuals who contend they did not move abroad permanently.
One affected claimant, Eve Craven, experienced her child benefit being canceled after a five-day trip to New York. She received a notification nearly 18 months later stating that her benefits were terminated due to a lack of records confirming her return. After presenting proof of her return to the UK, her benefits were reinstated, with all outstanding payments restored.
The initial problems were first reported in Northern Ireland, where families traveling from Belfast to Dublin may have encountered issues due to the absence of routine passport checks within the Common Travel Area. HMRC is committed to reviewing all cases using PAYE data and anticipates completing its examination shortly, while the Treasury Select Committee has launched its own investigation into the matter.
Source: https://www.bbc.com/news/articles/cjr0p4l2qryo?at_medium=RSS&at_campaign=rss