HMRC is currently reassessing the suspension of approximately 23,500 Child Benefit claims. Normally, Child Benefit is halted if an individual goes on vacation for more than eight weeks; however, some recipients claim their benefits were erroneously stopped.
In an effort to combat fraud, HMRC implemented a pilot program that utilized travel data to determine if individuals had permanently left the country. Unfortunately, some individuals were mistakenly flagged as not having returned from overseas trips.
HMRC has issued an apology to those affected by the incorrect suspension of payments. The tax office plans to complete the review by the end of the following week, reinstating claims and providing back payments where necessary.
Although the pilot scheme reportedly saved HMRC £17 million, The Guardian highlights that as many as 36% of targeted families were wrongfully suspected of fraud. In Northern Ireland, 72% of cases were misidentified, with only 28 out of 129 flagged families actually having left the country.
HMRC has updated its procedures to allow individuals a month to respond before their payments are cut off. A spokesperson for HMRC expressed regret for the erroneous suspensions and emphasized the commitment to safeguarding taxpayers’ funds.
Child Benefit, claimed by over seven million families, amounts to £26.05 per week for the first child and £17.25 per week for each additional child. Eligibility for Child Benefit includes being responsible for a child under 16 or under 20 in approved education or training, with the child residing with the claimant or receiving financial support equivalent to Child Benefit.
Individuals with high incomes may be subject to repaying a portion of their Child Benefit through the High Income Child Benefit Charge. Earnings over £60,000 result in a 1% repayment for every £200 over the threshold, with total repayment required once earnings surpass £80,000. Repayment can be made through self-assessment or PAYE tax code adjustments.
