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

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.

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.

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