Parents could be stripped of Child Benefit payments under new rules

A tax expert has warned that parents could be stripped of their child benefit thanks to a recent rule change. Andy Wood has warned that changes to the system could mean parents losing out.

The weekly Child Benefit payments range from £25.60 for the first-born or only child to £16.95 for each additional child. These payments, made until the child reaches either 16 years old or 20 if engaged in full-time education or training, help households in need and boost their overall financial stability and well-being.

Andy said: "The threshold for Child Benefit eligibility currently stands at £80,000 but it’s important to note that this figure includes the value of certain work benefits. When considering eligibility for Child Benefit, it's important to understand that the calculation extends beyond basic salary. For instance, a parent earning below the cap may find themselves ineligible if the value of their benefits, such as a company car or fuel allowance goes over the threshold.

"An individual's adjusted gross income for Child Benefit purposes involves various income sources, including gross salary, other employment income, taxable benefits, pensions income, self-employment profits, and investment income.

"Deductions can be made for certain expenses, such as pension contributions, tax-deductible business expenses, and costs related to schemes like the cycle to work scheme. These deductions play a key role in determining the final adjusted gross income for Child Benefit purposes.

"It's worth noting that over the first 16 years of a child's life, HMRC may provide parents with more than £17,000 in Child Benefit payments if their income falls below the £80,000 cap.

"The recent changes in Child Benefit thresholds signify a