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HMRC is re-evaluating the suspension of child benefit payments for approximately 23,500 claimants after utilizing travel data to determine that they had permanently left the country. Typically, the benefit ends after eight weeks of residing outside the UK, but numerous affected individuals raised concerns that HM Revenue & Customs (HMRC) had stopped their payments following a brief holiday.
The action followed demands from Members of Parliament on the Treasury Select Committee for explanations from the tax authority. HMRC has acknowledged any mistakes and advised those who believe their benefits were stopped erroneously to get in touch.
In an effort to combat child benefit fraud, the government initiated a crackdown in September, estimating savings of £350m over five years. This new approach permits the comparison of HMRC records with international travel data from the Home Office, resulting in the cessation of payments to thousands of families. However, in light of escalating complaints from affected individuals who had taken short vacations and returned to the UK, HMRC is now re-examining all cases.
One such case involved Eve Craven, who went on a brief trip to New York with her son. Almost a year and a half later, she received a letter notifying her that her son’s child benefit had been terminated. The letter referenced her US trip, claiming no record of her return. Following her appeal, Eve’s child benefit was reinstated with backdated payments. The initial issue was identified in Northern Ireland, where families flew out from Belfast, briefly visited Dublin, an EU member state, and then crossed the border back into UK territory without passport checks. HMRC is currently conducting a review of all previous cases and plans to finalize the process by the end of the following week.
*Additional reporting by Nick Edser*
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