Taxman warns parents of impending cut to Child Benefit Parents have just one month left to determine how the changes to Child Benefit will affect them, the Treasury warned today. HMRC has sent out letters to all those who benefit from Child Benefit explaining what their options are. More than a million families will see their income cut on January 7, as the Government begins to claw back child benefit payments from all those earning £50,000 or more. The Treasury has provided a calculator parents can use to find out how much Child Benefit they are entitled to here People on more than £50,000 can opt out of the benefit or pay tax on it - but either choice can cause problems later on. Many families say they have been given insufficient time to prepare for the changes, which could cost those with three children almost £2,500 a year. Earlier this year, tax experts warned that the complexities of the system could see people taxed for children who are not their own, while some stay-at-home parents could potentially lose valuable state pension entitlements. Half a million parents are now expected to be pushed into the self-assessment tax system as a result of the change. To register for self-assessment visit the Treaury website here.