![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/little-known-loophole-that-could-see-you-lose-child-benefit/&media=https://uknews.evprotec.com/wp-content/uploads/2023/08/0a6836a4-7c02-4e4d-947e-edb072550019.jpg&description=BENEFITS CHECK Published : 16:07, 1 Aug 2023 Updated : 16:09, 1 Aug 2023 PARENTS could be at risk of losing their child benefit because of a little-known loophole. If you or your partner earn over £50,000 you have to start paying some of the benefit back through the "high income child benefit charge". 1 Parents must make sure they don't go over the threshold Credit: Alamy But what families might not know is that interest earned from savings accounts forms part of that income. And with rates rising , savers will be edging closer to that threshold and could therefore have their child benefits cut. Therefore, make sure you're keeping on track of the interest being made from your savings just in case - it's your responsibility to tell HMRC when things have changed. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: 'The introduction of the high income child benefit tax charge has made the system hugely confusing with parents being hit with surprise bills. "At a time when families are already struggling with rising costs it's a headache many simply do not need. "The fact that it is based on a parent's total taxable income which includes savings is something that many people will not realise and given savings rates have been on the rise we could see more families creeping over the threshold and being lumbered with a bill." Helen said that one strategy parents could take to bring down income is by paying more into a pension. Though she said it might not work for families who need that money sooner rather than at retirement. "Another option could be to put savings into an ISA which will also shelter them while providing easier access to the money in times of need." What is the high income child benefit charge? If either parent or carer starts earning over £50,000, they have to start paying the high income child benefit charge. This means you have to pay back 1% of your child benefit for every £100 of income earned over the £50,000 threshold. Once){kind=link}
PARENTS could be at risk of losing their child benefit because of a little-known loophole.
If you or your partner earn over £50,000 you have to start paying some of the benefit back through the “high income child benefit charge”.
But what families might not know is that interest earned from savings accounts forms part of that income.
And with rates rising, savers will be edging closer to that threshold and could therefore have their child benefits cut.
Most people get something called the personal savings allowance, which lets you earn a chunk of interest before paying tax.