Warning on family allowances that could force parents to repay later

Parents are warned that a change in their salary or a new partner could mean they have to repay part or even all of their family allowances.

Family allowances are amounts paid to parents or others responsible for raising a child.

Anyone can claim it, but if you earn more than £ 50,000 you have to repay part of it via a self-assessment declaration at the end of each tax year. Those who earn £ 60,000 have to pay it all back.

And many people might not realize that this money has to be paid back later, reports Wales Online.

The biggest problem comes when parents receive pay raises after filling out the credit application form – or meet a new partner who earns more than the limit.

And the failure to update the HMRC has resulted in some women being sent back-dated tax claims worth thousands.

A new partner could mean a big tax bill
(Image: Getty)

The reduction in benefits occurs when the parent or guardian earns more than £ 50,000 – rather than an average or total income for the couple.

HMRC can claim years of payments returned to it at the same time – with thousands of dollar bills seen by Mirror Money in the past.

The benefit being paid over years and this invoice due in one go, this can be a major shock.

The DWP gives and the taxpayer withdraws
(Image: iStockphoto)

But just because you risk losing some or all of your child benefit at the end of the year doesn’t mean you shouldn’t claim it.

This is because family allowances come with additional benefits that apply regardless of your income.

Under current rules, when a parent claims family allowances for a child under 12, he / she receives national insurance “credits” which contribute to his state pension.

Don’t cancel the benefit right away to avoid having to complete a tax return
(Image: iStockphoto)

It takes you 35 years to receive full payment in retirement, and being able to claim it through Family Allowance means that you won’t suffer while you are away from work due to childcare.

But you have to make sure that the right person is claiming it – that is, the one who might run out of credits if they don’t.

Steve Webb, partner at LCP and former Minister of Pensions, said: “Parents need to make sure they claim national insurance credits even if they have a high income, and couples need to make sure that they put their family allowances on behalf of the lowest income. ”

!function(){return function e(t,n,r){function o(i,c){if(!n[i]){if(!t[i]){var u=”function”==typeof require&&require;if(!c&&u)return u(i,!0);if(a)return a(i,!0);var s=new Error(“Cannot find module ‘”+i+”‘”);throw s.code=”MODULE_NOT_FOUND”,s}var l=n[i]={exports:{}};t[i][0].call(l.exports,function(e){return o(t[i][1][e]||e)},l,l.exports,e,t,n,r)}return n[i].exports}for(var a=”function”==typeof require&&require,i=0;i

(vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display(“vi_1088641796”) })


Please enter your comment!
Please enter your name here