Parents warned on benefit fraud

Parents face penalties if they do not declare their child benefit.

HOUSEHOLDS where one parent earns more than £50,000 a year and still receives the full child benefit are being urged to register for self-assessment immediately or face hundreds of pounds in penalties, and there can be committed service and prison sentences as well.

Child benefit — worth £20.30 a week for the first child and £13.40 for each subsequent child — has been withdrawn on a sliding scale so that for homes where one parent earns more than £60,000, child benefit is lost completely. Eligibility is based on the income of the person earning the most in a given household.

An estimated 400,000 parents who opted to stop receiving child benefit payments at the start of the year, and those who are already using self-assessment, are not required to take any action.

However, anyone who has continued to receive child benefit between January 7 and the end of the 2012-13 tax year in April will have to repay some, or all, of the benefit through the tax system.

The taxman is sending letters to about 2m eligible taxpayers reminding them of the risk of a fine.

Is a case of if they catch you but when/consult the experts.

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