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Third of families set to lose Child Benefit have not been told by HMRC

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 03 January 2013  |  Comments 6 comments

The taxman has only managed to contact 800,000 of the 1.1 million families set to be hit by Child Benefit changes next week.

Third of families set to lose Child Benefit have not been told by HMRC

More than a million families are set to lose at least part of their Child Benefit payments when changes to the system come into force on 7th January.

Yet a third of those families may not realise they are about to be hit in the pocket, as HM Revenue & Customs has yet to write to them to inform them of the changes.

The Child Benefit changes

The revamp will see families where one parent earns more than £60,000 a year lose all of the benefit. Families where one parent earns between £50,000 and £60,000 a year will see their benefit reduced on a sliding scale of 1% for every £100 of income earned between £50,000 and £60,000.

What’s more, they will have to fill in self-assessment tax forms in order to get the benefit.

Read Child Benefit changes: what you need to know for a detailed look at the changes.

Originally the Chancellor wanted to simply remove Child Benefit from any household with a higher-rate taxpayer. However this was adjusted following staunch opposition.

Families in the dark

Around 1.1 million families are set to be affected by the changes. So far 800,000 have been contacted, but that leaves around 300,000 families still in the dark about the removal of their benefit.

However, even if your income falls above the £60,000 threshold, it is possible to hang on to at least some of your Child Benefit. Check out How to keep your Child Benefit for tips on how to do it.

More on benefits and tax

Calls to HMRC cost us £136 million!

How to make sure you’re on the right tax code

How to get your online self-assessment tax return right

Beware this tax scam

Eight top tax return tips

Tax havens and tax hells

How to get a tax refund

How to claim your Tax Credits

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Comments (6)

  • Cleisthenes
    Love rating 5
    Cleisthenes said

    It seems to odd that you can have a family where two parents can earn 49K each* and still get Child Benefit**

    While a family with one working parent earning 50K and the other child caring will get zilch.

    *that's 98K for mathematically challenged.

    **such families do exist -- although a more common scenario is two parents one earning 30K and the other 25K*** and still getting Child Benefit.

    ***That's 55K -- still more than the one working parent on 50K.

    The only fair ways would have been:

    a) Abolish Child Benefit for everyone.

    b) Calculate Child Benefit on the COMBINED income of BOTH parents.

    Report on 11 January 2013  |  Love thisLove  0 loves
  • Cleisthenes
    Love rating 5
    Cleisthenes said

    It seems to me typical of the IR's incompetence that it still hasn't written to everyone.

    Though I would be curious where Lovemoney gets its figures from -- perhaps you should tell the IR that missed someone.

    Surely everyone who currently receives Child Benefit should be required to fill in a Self Assessment to see if the still qualify

    Report on 11 January 2013  |  Love thisLove  0 loves

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