HMRC Urges Thousands to Claim Average £2,112 Refund

HMRC Advises: Thousands Could Claim an Average of £2,112 Each – Check Now

HM Revenue and Customs (HMRC) has announced that over 670,000 individuals, aged between 18 and 22, may be entitled to a windfall of £2,112 on average through long-term tax-free savings accounts known as Child Trust Funds (CTFs). These accounts were established for children born between September 1, 2002, and January 2, 2011, and now many remain unclaimed.

Understanding the Origin of Child Trust Funds

Initially, the government deposited £250 into each CTF, which could only be accessed once the child reached the age of 18. It is believed that numerous accounts are currently inactive, with substantial funds waiting for their rightful owners.

How to Reclaim Your Child Trust Fund

If you or your legal guardians are aware of the Child Trust Fund provider, you can directly contact them. However, if the provider is unknown, you can utilize an online Gov.uk tool to find out. Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasized, “Thousands of Child Trust Fund accounts are sitting unclaimed. We want to reunite young people with their money and we’re making the process as simple as possible.”

Beware of Third-Party Agents

Angela MacDonald further advises, “You don’t need to pay anyone to find your Child Trust Fund for you. Locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.” Hiring third-party agents to track down CTFs can be costly, with fees reaching up to £350 or even claiming 25% of the account’s value.

Not only can using an agent reduce your final amount, but it might also delay the process. You would still have to provide the same personal details as you would through the free GOV.UK service.

Over the past year, more than 450,000 people successfully located their Child Trust Funds using their National Insurance number and the GOV.UK tool. Typically, HMRC sends a letter with the details of the CTF provider within three weeks of the inquiry.

What to Do if You Don’t Get a Response

In case you do not receive a response from HMRC within six weeks, you should write to them and include your reference number if available. Make sure to follow up to ensure that you reclaim the funds you are entitled to.

Utilize this opportunity to check if you have any unclaimed funds waiting for you. This simple step could result in a significant financial boost. Click Here For More Personal Finance tips and strategies.