Hard-working families hounded to pay back thousands after falling foul of child benefit rules

Mail Online | 9/19/2018 | Richard Marsden for the Daily Mail
Alenaaa (Posted by) Level 3
Click For Photo: https://i.dailymail.co.uk/1/2018/09/18/22/4377370-0-image-a-19_1537306397840.jpg

Middle-class families are being hounded by the taxman for thousands of pounds after accidentally falling foul of complex child benefit rules, Money Mail can reveal.

In the worst cases, parents have been sent threatening demands after wrongly receiving child benefit payments for years.

Father - Twins - Bill - £6 - Years

A father of twins was hit with a bill for more than £6,000 for five years' worth of child benefit, plus interest and penalty charges.

In another case, a father of four was sent a demand for £3,200 after being given the wrong advice by tax officials six years ago.

Mother - Child - Benefit - Son

One mother was even billed for child benefit she had not received, as her son had not yet been born.

In some instances, families say HM Revenue & Customs (HMRC) has refused to allow them to repay the debt in manageable instalments, leaving one couple with no choice but to take out a loan to cover the cost.

Problems - Clampdown - Child - Benefit

The problems stem from a clampdown on child benefit in 2012.

New rules introduced by the then-Chancellor George Osborne mean that if one parent earns more than £60,000, the family is no longer eligible for child benefit, which is worth £20.70 a week for the first child and £13.70 for each born after.

£50 - £60 - Portion - Payment

Those earning between £50,000 and £60,000, meanwhile, are only entitled to a portion of the payment.

The change caused uproar at the time, as families claimed it was unfair that if two parents each earned £49,000 (a total of £98,000), they could claim the benefit — yet if one parent earned £60,000 and the other nothing, they couldn't.

Experts - Thousands - People - Demands - Overpayments

Now, experts are warning that thousands of people face demands for overpayments after failing to understand the new rules or realise they had changed.

The complicated way in which the system works means that instead of HMRC just paying parents what they are owed, the onus is...
(Excerpt) Read more at: Mail Online
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!