Warning thousands of parents could be forced to repay child benefits
THOUSANDS of parents could be forced to repay child benefits if they have had a change in salary or new partner since making a claim.
Child benefit is worth £21.05 a week for an eldest or only child and £13.95 a week for each additional child.
Anyone can claim the payout if they have children under the age of 16, which is designed to help parents with the costs of raising them.
Most parents don't have to repay it, unless they are higher earners.
The issue isn't new but it's worth checking if you're affected to avoid being hit with a nasty bill.
The problem relates to a change in child benefit rules in 2013, which saw anyone earning more than £50,000 having to pay a charge to continue receiving the benefit.
Can I claim child benefit?
YOU can claim child benefit if you’re responsible for one or more children under 16.
You may also be entitled to the extra cash if the child you're responsible for is aged under 20 if they stay in approved education or training.
The payments are worth £21.05 a week for your eldest or only child, and then £13.95 a week per child for any additional children.
You may have to pay a tax charge if you (or your partner’s individual income is over £50,000. This is known as the .
This charge increases by 1% for every £100 earned over £50,000.
Once you earn £60,000, the charge effectively wipes out the gain you'd get by receiving child benefit.
The reduction only applies when one parent or guardian earns more than the threshold, and not on combined household earnings.
To pay this charge, parents have to file self-assessment tax returns for the previous tax year every January.
Many parents knowingly continue to claim the benefit and pay the charge because it helps them to build up national insurance credits, which you need to qualify for the state pension.
But others may have crossed the earnings threshold without realising, such as after getting a pay rise or meeting a new partner that earns over the limit.
Failing to let HMRC know about a change in circumstances could leave parents owing thousands.
HMRC can claim for years worth of unpaid charges in one go, leaving tens of thousands of parents with a hefty bill to pay in one go.
For example, the maximum charge for the 2016/17 tax year was a whopping £1,076 and that's before any penalty fees are added.
Earlier this year, we reported how one family was stung with a £7,400 tax bill.
In previous years, HMRC has contacted parents who owe cash by letter.
If you're concerned that you may owe money then you should to find out.
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We've put together a guide on how you can do this online.
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