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Young People and Taxes

Newsletter issue - July 2010

The summer is here and the exams are over, so many young people will be leaving school or college this month to take their chances in the jobs market. It is a daunting prospect; trying to cope with the tax and benefits systems for the first time.

If your child is in this position you could point them towards the HMRC website designed for 16 to 19 year olds:

It covers topics such as NI and how the NI number is important, what is PAYE and self-assessment. There are also quizzes and a teacher's area including materials teachers can use to explain tax to different age groups of students.

As a parent you may need to tell HMRC that your child is no longer in full-time education.

  • Child benefit is paid until 31 August following the child's 16th birthday, but after that date the benefit if only paid while the child is under 20 and in relevant education or training, or is aged under 18 and is registered for work, education or training with an approved body. You can provide the relevant details to HMRC using an online form on their website, or by phoning the child benefit helpline on: 0845 302 1444.
  • If you are claiming Child Tax Credits for that child you also need to inform the Tax Credits Office that your child is no longer in full-time education. You can only do this by telephone on 0845 300 3900 as the online forms for Tax Credits were taken down some years ago due to fraud.

Although Working and Child Tax Credits are administered by HMRC who also administer Child Benefit, you will need to make to make a separate call to the Tax Credits office as their computers are not linked into the Child Benefit system.