Time running out to update child benefit status for over-16s

PARENTS of 16-year-olds are running out of time update their children’s education status to avoid breaking the law.

Families are entitled to keep claiming child benefit if their children are moving into full-time further education or training.

However, parents must tell HM Revenue & Customs (HMRC) by August 31 what the plans for their child’s education are so that they don’t get caught out.

Guardians are no longer entitled to the benefit if their children choose not to pursue further education and can be hit with a tax bill and fines if they continue to claim the payments illegally.

Government data shows 7.21 million families receive child benefit and HMRC has written to those who are affected.

Child benefit records can be updated online by visiting GOV.UK or parents and carers can fill in and send back the 297b form they received from HMRC in the post.

Families who qualify for the benefit can continue receiving it until their child reaches the age of 20 – so long as they remain in fulltime education or training.

But parents who have an individual income that exceeds £50,000 may be required to pay the High Income Child Benefit Charge by completing an annual Self Assessment tax return.

Parents or carers with a personal income of more than £50,000 will have to pay back to HMRC 1 per cent of every £100 they earn at the end of every tax year.

Those whose incomes are £60,000 or more must repay all of the benefit through a tax return.

The rules do not apply to combined family incomes - so partners who earn less than £49,999 individually have nothing to repay.

People earning £50,100 or more, can avoid such charges, however, if they move enough of their salary into their workplace pension.