Fears of tax clawback of child benefit

Higher-earner parents whose child benefit is being ‘clawed back’ through the tax system may face large tax deductions, warns the Daily Telegraph.

HMRC says the child benefit the family has received should be collected in monthly instalments by giving the higher earner a new tax code. For example, a two-child family will have £1,752 taken back at the rate of £146 per month for the next two months with the balance collected in the new tax year on the same monthly basis. But some coding notices have pointed to much larger lump-sum deductions. HMRC insists its codings are right but suggests anyone concerned should call its helpline on 0300 200 3300.