Posted by Nick Turpin on 29 Aug 2013
Update on High Income Child Benefit Charge
HM Revenue & Customs’ (HMRC) have announced that they will be writing to around two million higher rate (40%) taxpayers, to remind them that if their income is over £50,000 and they or their partner received Child Benefit in 2012/13, they will need to complete a Self Assessment tax return for the 2012/13 tax year.
Taxpayers that the charge applies to must register for Self Assessment for the 2012/13 tax year by 05 October 2013, to ensure they can declare the Child Benefit received, pay the tax charge on time and thus avoid any penalties.
In future years, taxpayers may be able to come out of Self Assessment if they choose to opt out of receiving Child Benefit, and HMRC has confirmed that over 390,000 people with higher incomes have so far taken this option.
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Further to our previous articles on the subject http://www.taxinnovations.com/articles/child-benefit-update-on-the-new-rules.
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