Posted by Tax Innovations on 17 May 2012
Child Benefit Payments to Parents are Changing
The Institute of Chartered Accountants for England and Wales has told the Treasury that the forthcoming changes to child benefits to parents “is seriously flawed in principle and in practice”.
From January 2013 any family with a parent earning more than £50,000 a year will lose a proportion of their entitlement and those with a single earner on more than £60,000 a year will not receive it at all.
Child benefit is a tax-free payment that is aimed at helping parents cope with the cost of bringing up children. The current benefit allows parents to claim £20.30 a week for their first child and £13.40 a week for each of their other children.
For those who earn more than £50,000 and continue to claim the benefit they will have to file a Self-Assessment Tax Return and penalties could arise if Returns are not completed.
The Institute has made the point that the plans could be unworkable as they seek to combine the benefits system, which is based on households, and the tax system, which is based on individuals.
If you are likely to need help in completing your 2012/13 Tax Return please contact us to discuss.
- Property Partnership Incorporation and SDLT
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- Tax Relief For Residential Mortgages
- Overseas Pension Changes 6 April 2017
- Non-Resident Landlords – UK Tax Update